/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/111208.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, December 8, 2011, Vol. 12, No. 243 Headlines A R M E N I A ARMENIAN ACBA: Fitch Cuts LT Issuer Default Rating to 'BB-' B U L G A R I A BDZ: At Risk of Liquidation if Strike Continues I R E L A N D VALLAURIS II: S&P Raises Rating on Class IV Notes to 'B+' I T A L Y EDISON SPA: S&P Revises Stand-Alone Credit Profile to 'bb+' K A Z A K H S T A N SOUTH OIL: Fitch Assigns 'BB' Senior Unsecured Rating L U X E M B O U R G BOZEL S.A.: U.S. Trustee Appoints 3-Member Creditors' Panel BOZEL S.A: Committee Retains Pick & Zabicki as Counsel N E T H E R L A N D S UPC FINANCING: Moody's Assigns Ba3 Rating to US$500MM Facility AB R U S S I A POLYMETAL OJSC: Fitch Lifts Issuer Default Ratings to 'B+' S L O V A K R E P U B L I C SLOVGLASS POLTAR: Failed Restructuring Prompts Bankruptcy Filing S P A I N BANCO CEISS: Moody's Assigns D+ Bank Financial Strength Rating TDA 24: Fitch Puts 'Bsf' Rating on Class B Notes on Watch Neg. * SPAIN: Government Mulls Bank Cleanup Plans S W E D E N SAAB AUTOMOBILE: GM Won't Back Proposed Ownership Structure SAAB AUTOMOBILE: Administrator Wants to Terminate Reorganization * SWEDEN: Corporate Failures Up 4% in November 2011 U N I T E D K I N G D O M BLACKS LEISURE: Seeks White Knight Investor to Rescue Firm CONVERS SPORTS: WRC Chiefs Hope to Secure Backing H&L GARAGES: Goes Into Administration, Cuts 176 Jobs MF GLOBAL: Administrators Recover US$500MM of Client Assets SUPERGLASS: To Invest GBP6.5 Million to Upgrade Factory TUBE PLASTICS: Goes Into Administration, 100 Jobs at Risk WHITTLEBURY HALL: Owners Out of Administration, Trades Normally * UK: Business Sale Report Reveals Map of Distressed Firms X X X X X X X X * S&P Puts Eurozone Sovereign Ratings on CreditWatch Negative * S&P's Global Corporate Default Tally Rises to 43 Issuers * S&P: Global Default Rate Increases After 5 Mos. of Declines * Upcoming Meetings, Conferences and Seminars ********* ============= A R M E N I A ============= ARMENIAN ACBA: Fitch Cuts LT Issuer Default Rating to 'BB-' ----------------------------------------------------------- Fitch Ratings has downgraded Armenian ACBA-Credit Agricole Bank's (ACBA) Long-term Issuer Default Rating (IDR) to 'BB-' from 'BB'. The Outlook is Stable. The bank's Viability Rating (VR) has been affirmed at 'b+'. The downgrade of ACBA's Long-term IDR reflects the agency's reassessment of the probability of support from its shareholder Credit Agricole S.A. (CA; 'AA-'/RWN). In its assessment, Fitch now places greater emphasis on factors which it had previously identified as constraining the probability of support. These factors include the fact that the Armenian market is not of strategic importance for CA, the minority (28%) stake held by CA, and CA's limited presence in other emerging markets, meaning ACBA's performance, and hypothetical default, would bear little contagion risk for the rest of the group. At the same time, ACBA's IDRs and Support Rating continue to reflect the limited probability of support from CA, given the brand association, the track record of cooperation with CA and ACBA's small size (and hence potential cost of support). Future revisions of ACBA's IDRs will likely be driven by any changes in Fitch's view of CA's propensity to provide assistance to ACBA in case of need. Any downward revision of Armenia's sovereign rating, implying a higher risk of systemic stress, could also result in a downgrade of ACBA. Support for ACBA from CA has never been required, or therefore tested, in the past given ACBA's sound financial position. In the normal course of business, CA provides funding facilities to the bank, which accounted for nearly 10% of ACBA's non-equity funding at end-3Q11. ACBA's VR considers recent rapid growth, increased loan concentrations and still high loan dollarization (57% of end-Q311 loans), exposing the bank to indirect market risk in case of a national currency devaluation. At the same time, the rating reflects low levels of non-performing loans, sound liquidity and manageable refinancing risks, strong profitability and capitalization (Basel II total capital ratio of 20.8% at end- Q311) as well as the bank's broad domestic franchise. Upside potential for the bank's VR is currently limited, although downward pressure could result from a further rise in lending concentrations, or deterioration in capital adequacy ratios as a result of weaker asset quality. At end-Q311, ACBA was Armenia's largest bank by total assets (nearly 11% of the system's assets) with sizeable market shares of around 50% in agricultural lending and 14% in consumer lending. CA's 28% stake is owned in part directly and in part indirectly; the remainder is distributed among 10 regional agricultural unions. The rating actions are as follows: -- Long-term IDR: downgraded to 'BB-' from 'BB'; Outlook Stable -- Short-term IDR: affirmed at 'B' -- Viability Rating: affirmed at 'b+' -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '3' =============== B U L G A R I A =============== BDZ: At Risk of Liquidation if Strike Continues ----------------------------------------------- FOCUS News Agency, citing Darik Radio, reports that Bulgarian Transport Minister Ivaylo Moskovski said Bulgarian State Railways (BDZ) will face liquidations if trade unions won't halt their strike. According to FOCUS News, asked what concessions he is ready to make, he answered: "We can offer them nothing more; the company does not have financial means to offer them anything more. We offer them to rescue the company." He said that if the trade unions keep on insisting, they will liquidate the company, FOCUS News notes. As reported by the Troubled Company Reporter-Europe on Nov. 28, 2011, FOCUS News said that Mr. Ivaylo Moskovski is to negotiate deferrals with the creditors of the BDZ over the state of the company. In a separate report, Novinite.com related that Vladimir Vladimirov, Chairman of the Board of Directors of BDZ Holding, said the company can only last ten days on strike. Novinite.com disclosed that in an interview for the Bulgarian National Television (BNT), Mr. Vladimirov warned that if the protests lasted longer, the company will lose its customers permanently and could go bankrupt. Mr. Vladimirov also informed that BDZ's creditors had stepped up pressure on the company's management over the strike, Novinite.com noted. BDZ employees have said they are set to strike every day from 8:00 a.m. until 4:00 p.m. until they resolve their differences with the government and at least reach a compromise, according to Novinite.com. November 25 marked the second day of the nationwide strike of Bulgarian railway workers, Novinite.com disclosed. BDZ's staff rose in revolt against the intention of the company's management to lay off at least 2,000 employees of the company, and to reduce the number of trains in operation in Bulgaria by about 150, as part of a wider reform package unveiled in October 2011, Novinite.com recounted. Established in 1885, The Bulgarian State Railways, commonly known as BDZ, is Bulgaria's state railway company and the largest railway carrier in the country. The company's headquarters is located in the capital Sofia. ============= I R E L A N D ============= VALLAURIS II: S&P Raises Rating on Class IV Notes to 'B+' --------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on Vallauris II CLO PLC's outstanding EUR232.09 million (excluding combination notes) notes. Specifically, S&P has: Affirmed its ratings on the class I and II notes and the class V combination notes; and Raised its ratings on the class III and IV notes. "The rating actions follow our assessment of the transaction's performance since our previous review in February 2010," S&P said. "We note that since our previous review, the issuer has used interest and principal proceeds to amortize the class I notes in order to cure the class III and IV par value coverage tests (see 'Transaction Update: Vallauris II CLO PLC,' published on Feb. 24, 2010). The class I notes have amortized to 77% of their initial notional amount," S&P related. "In our opinion, the portfolio does not currently include any defaulted assets, compared with EUR22.75 million at the time of our last review," S&P said. "From the information we received from the manager, we believe that the amount of par recovered from the assets that we considered defaulted in February 2010 was 92%, which exceeded our expectation of 37%," S&P said. "As a result of the developments, we estimate that, since February 2010, the total amount of collateral that we consider available to the rated notes has increased to EUR259.48 million from EUR255.74 million, and the credit enhancement available to each of the rated notes has also increased," S&P said. "On the cash flow side, we noted an increase in the performing portfolio weighted-average spread to 3.24%, from 2.72% in February 2010," S&P related. "We subjected the capital structure to various cash flow scenarios incorporating different default patterns and interest rate curves, to determine each tranche's break-even default rate (BDR) at each rating level. In our analysis, we used a total collateral balance of EUR259.48 million, the current weighted- average spread, and the weighted-average recovery rates that we considered to be appropriate," S&P said. "We noted that the BDRs for each of the class I, II, and III notes has remained largely stable since February 2010. However, we saw a significant improvement in the BDR for the class IV notes," S&P said. "On the asset side, we did not observe any significant change in the portfolio credit quality since February 2010," S&P said. "We note that the available principal cash currently represents 11% of the total collateral. The portfolio manager has confirmed that it intends to reinvest the cash into further assets. In line with the portfolio's eligibility criteria, we assumed that the cash will be reinvested into 'B-' rated assets. In our analysis, the impact of these reinvestments on the portfolio credit quality was limited," S&P said. According to the latest available trustee report, all of the overcollateralization tests are now passing, and deferred interest amounts on the class IV notes were fully repaid on the September payment date. "Based on our credit and cash flow analyses, we consider that the level of credit enhancement available to the class IV notes is now consistent with a higher rating than previously assigned," S&P said. "The rating on the class IV notes is constrained to 'B+ (sf)' by the application of the largest obligor default test, a supplemental stress test we introduced as part of our criteria update (see 'Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs,' published Sept. 17, 2009)," S&P said. "The rating on the class III notes is no longer constrained by the application of the largest obligor. We have therefore raised our rating on the class III notes to 'BB+ (sf)'," S&P said. "The affirmations of the ratings on the class I and II notes reflect our view that the notes have only adequate credit enhancement to maintain their current ratings," S&P said. "The class V combination notes currently comprise EUR10.71 million of French 'obligation assimilable du tresor' (OAT) strips, with an aggregate nominal face amount (at maturity) of EUR18.05 million, and EUR6.30 million of subordinated notes," S&P said. "The rating on the class V combination notes is linked to our rating on the Republic of France. We have therefore affirmed our 'AAA (sf)' rating on the class V combination notes," S&P said. "Elavon Financial Services Ltd. (AA-/Stable/A-1+) currently acts as account bank and custodian. We have applied our 2010 counterparty criteria and, in our view, Elavon Financial Services is appropriately rated to support our ratings on the notes. The London branch of Citibank N.A. (A/Negative/A-1) currently provides currency hedges on EUR12.76 million of non-euro assets. We consider that the exposure to Citibank is sufficiently limited that its failure to perform would not affect our rating on the class I notes," S&P said. Vallauris II CLO is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. Ratings List Class Rating To From Vallauris II CLO PLC EUR324.6 Million Floating-Rate and Subordinated Notes Ratings Raised III BB+ (sf) B- (sf) IV B+ (sf) CCC- (sf) Ratings Affirmed I AA+ (sf) II BBB+ (sf) Combo V AAA (sf) ========= I T A L Y ========= EDISON SPA: S&P Revises Stand-Alone Credit Profile to 'bb+' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long- and short- term corporate credit ratings on Italy-based utility Edison SpA to 'BBB-/A-3' from 'BBB/A-2' following the revision of its stand- alone credit profile (SACP) on Edison to 'bb+' from 'bbb-'. "At the same time, we revised the CreditWatch status on the ratings to negative from developing. The ratings were originally placed on CreditWatch developing on June 21, 2011, due to uncertainty over Edison's shareholder structure," S&P said. The ratings on Edison continue to reflect a one-notch uplift for shareholder support from joint owner Electricite de France S.A. (EDF; AA-/Stable/A-1+). "The downgrade reflects our view that tough market conditions in Edison's key midstream gas operations will lead to much lower profitability and cash flows over the medium term. As a result, we have reassessed our opinion of Edison's business risk profile, which we now classify as 'satisfactory' rather than as 'strong' previously. This led us to revise our stand-alone credit profile (SACP) assessment to 'bb+' from 'bbb-'," S&P said. "Edison's results for the first nine months of 2011 remained, in our opinion, very weak, with EBITDA declining by 23% compared with the same period the previous year. Despite Edison completing the renegotiation of its long-term gas contract with Promgas (not rated), we anticipate that Edison's credit metrics will likely fall well below levels that we view as commensurate with the previous SACP in 2011 and 2012," S&P said. "Meanwhile, on Nov. 4, 2011, Edison's shareholders agreed in principle the allocation of the generation assets and the main steps of a reorganization of the ownership structure. We previously anticipated that a binding agreement regarding the shareholder structure and governance of Edison would be signed by the end of November 2011. It has now been postponed, for the fourth time, to the end of December 2011," S&P said. "If a binding agreement was to be signed by the end of December, completion would remain subject to the final documentation, the completion of all corporate approval processes, and the approval of the relevant antitrust and regulatory authorities. In light of these factors, we believe that the reorganization cannot be completed and implemented before the end of the first quarter of 2012," S&P said. "The CreditWatch listing reflects the possibility of us lowering the ratings, depending on our view of the rating implications of further delays in the reorganization of Edison's ownership structure as well as Edison's ability to maintain an 'adequate' liquidity position," S&P said. "We would likely lower the ratings by one notch if we believed that EDF would sell its stake in Edison. We could consider a multi-notch downgrade if, as a result of Edison's inability to secure long-term funding, we were to assess the liquidity of Edison as 'less than adequate,'" S&P said "We could affirm the ratings if EDF were to obtain control of Edison, because this would support the one-notch uplift for shareholder support from EDF that we currently factor into our corporate credit ratings on Edison," S&P said. "We aim to review the CreditWatch placement by March 2012," S&P said. =================== K A Z A K H S T A N =================== SOUTH OIL: Fitch Assigns 'BB' Senior Unsecured Rating ----------------------------------------------------- Fitch Ratings has assigned South Oil LLP's KZT1 billion 9% domestic notes due September 8, 2014 a final local currency senior unsecured rating of 'B' and final National senior unsecured rating of 'BB(kaz)'. The proceeds from the notes issuance are expected to be used for general corporate purposes. South Oil LLP is Kazakhstan-based small privately-owned oil producer involved in oil exploration and production in the Kyzylorda region, South Kazakhstan. =================== L U X E M B O U R G =================== BOZEL S.A.: U.S. Trustee Appoints 3-Member Creditors' Panel ----------------------------------------------------------- Tracy Hope Davis, the United States Trustee for Region 2, pursuant to 11 U.S.C. Sec. 1102(a) and (b), appointed three entities to serve on the Official Committee of Unsecured Creditors of Bozel S.A. The Creditors Committee members are: 1. 1553283 Ontario Inc. 331 Robinson Street Oakville, Ontario Canada L6JHI Tel: (416) 817-0580 ATTN.: Benjamin W. Penman, President 2. Benjamin Alon Shaw 156 Barnstable Road Thorpe Bay Southend Essex SS1 3PP United Kingdom Tel: 011-44-17025-86851 3. Eastveld Realties Canada Corp. 2 Westmount Square, Suite 207 Westmount, Quebec Canada H3Z2S4 E-mail: ercc@eastveld.com Attn.: Christopher A. Eastveld About Bozel S.A. Bozel S.A. is a company limited by shares (a 'societe anonyme"or ('s.A.") organized under the Grand Duchy of Luxembourg, and registered with the Luxembourg Trade and Companies Register under the number B107769. Bozel is a holding company which, at the time of its Chapter 11 filing, owned substantially all of the stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel Europe"), and continues to own Bozel, LLC (organized in the state of Florida). Prior to the sale of Bozel Brazil and Bozel Europe to Japan Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its three operating subsidiaries on three continents, was a worldwide leader in the sale of calcium silicon ("CaSi"). Immediately preceding its filing for bankruptcy protection, Bozel S.A. sold over 40% of the world's CaSi powder output. Bozel Brazil produces primarily CaSi and cored wire, which is an industry- preferred ingredient in the production of high quality steel and steel alloys. Bozel Europe produces primarily cored wire. Bozel, LLC, formerly marketed and distributed in the United States the products produced by Bozel Brazil. Bozel S.A. is the sole member and manager of Bozel, LLC. Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-11802) on April 6, 2010. In its amended schedules, Bozel disclosed US$41,134,010 in assets and US$47,365,036 in liabilities. Bozel, LLC, filed a separate petition for Chapter 11 (Bankr. S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011. Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg Traurig, LLP, in Miami, represent the Debtors as counsel. The two cases are jointly administered under Case No. 10-11802. BOZEL S.A: Committee Retains Pick & Zabicki as Counsel ------------------------------------------------------ The Official Unsecured Creditors Committee of Bozel, SA, asks the U.S. Bankruptcy Court for the Southern District of New York for permission to retain Pick & Zabicki, LLP as counsel. Upon retention, the firm will, among other things: a. advise the Committee with respect to its rights, duties, and powers in the Chapter 11 case; b. assist and advise the Committee in its consultations with Debtor relative to the administration of the case; and c. assist the Committee in analyzing the claims of the Debtor's creditors and in negotiating with such creditors. Douglas J. Pick, a lawyer of Pick & Zabick, attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm's rates are: Personnel Rates --------- ----- Partners $300-$425 Associates $250 Paraprofessionals $125 About Bozel S.A. Bozel S.A. is a company limited by shares (a 'societe anonyme"or ('s.A.") organized under the Grand Duchy of Luxembourg, and registered with the Luxembourg Trade and Companies Register under the number B107769. Bozel is a holding company which, at the time of its Chapter 11 filing, owned substantially all of the stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel Europe"), and continues to own Bozel, LLC (organized in the state of Florida). Prior to the sale of Bozel Brazil and Bozel Europe to Japan Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its three operating subsidiaries on three continents, was a worldwide leader in the sale of calcium silicon ("CaSi"). Immediately preceding its filing for bankruptcy protection, Bozel S.A. sold over 40% of the world's CaSi powder output. Bozel Brazil produces primarily CaSi and cored wire, which is an industry- preferred ingredient in the production of high quality steel and steel alloys. Bozel Europe produces primarily cored wire. Bozel, LLC, formerly marketed and distributed in the United States the products produced by Bozel Brazil. Bozel S.A. is the sole member and manager of Bozel, LLC. Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-11802) on April 6, 2010. In its amended schedules, Bozel disclosed US$41,134,010 in assets and US$47,365,036 in liabilities. Bozel, LLC, filed a separate petition for Chapter 11 (Bankr. S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011. Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg Traurig, LLP, in Miami, represent the Debtors as counsel. The two cases are jointly administered under Case No. 10-11802. ===================== N E T H E R L A N D S ===================== UPC FINANCING: Moody's Assigns Ba3 Rating to US$500MM Facility AB ----------------------------------------------------------------- Moody's Investors Service has assigned a definitive Ba3 rating to the US$500 million additional term loan facility AB due in December 2017 issued by UPC Financing Partnership. The rating outlook is stable. UPC Financing is an entity indirectly wholly-owned by UPC Holding B.V. ('UPC'; Ba3 CFR) and is an established borrower under the UPC Bank Facility together with UPC Broadband Holding B.V. ('UPC Broadband'). The proceeds of the new loan have been used to repay some of the outstanding revolver drawings under the UPC Bank Facility. Ratings Rationale The definitive Ba3 rating on the new term loan ('Facility AB') is in line with the rating for the UPC Broadband bank facilities (rated Ba3) reflecting the pari-passu status of this loan with the existing senior secured bank facilities for UPC. The principal methodology used in rating UPC Financing was the Global Cable Television Industry Methodology published in July 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. UPC is a pan-European cable provider, a principal subsidiary of Liberty Global Inc. In 2010, the company generated EUR3.7 billion in revenue and EUR1.8 billion in reported operating cash flow. =========== R U S S I A =========== POLYMETAL OJSC: Fitch Lifts Issuer Default Ratings to 'B+' ---------------------------------------------------------- Fitch Ratings has upgraded Russia-based gold and silver producer OJSC Polymetal's (Polymetal) Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'B' and its National Long-term rating to 'A-(rus)' from 'BBB(rus)' and affirmed its Short-term foreign and local currency IDRs at 'B'. The Outlook for all the Long-term ratings is Stable. The agency has simultaneously withdrawn all the ratings as they are no longer considered relevant for Fitch's coverage. The upgrade reflects the positive progress the company has made in diversifying its reserve base whilst maintaining a good average mine life at existing operations of around 13 years. Polymetal expects to start commissioning of its new hydrometallurgical plant in Amursk in December 2011. A successful commissioning of this plant will further strengthen the company's operating profile, as it will allow the bulk processing of refractory ores from Albazino and Mayskoye gold deposits located in the Russian Far East with acceptable recovery rates. Key constraints on the ratings include the high volatility of gold and (especially) silver prices, the high correlation between prices of the two commodities, and the sensitivity of company's future financial results and credit metrics to price changes. Operating activity in the Russian Far East, a region with poor infrastructure and severe climate conditions, bears additional risks and may lead to an underestimation of required capex and schedule setbacks relative to the stated development budgets and timelines. Factors like gold and silver yield grades, exchange rate fluctuations and cost inflation are outside the company's control. Fitch has concerns about the company's increasing cash costs. In 2010, the company's average cash costs increased by 19% compared with 2009 yoy to USD571/oz of gold equivalent, and in H111 - to USD671/oz of gold equivalent. Polymetal's liquidity position is adequate. Fitch expects the company to be free cash flow neutral in 2011 and also considers that it should be able to refinance maturing loans with new facilities should it choose to do so. Fitch expects the company to remain free cash flow neutral in 2012-2013. For FY2011, Fitch estimates a 40% increase in revenues to around USD1.3bn with an EBITDAR margin of approximately 48% compared with 44% in FY2010, driven mostly by increase of prices. Funds from operations (FFO) gross leverage is projected at around 1.6x as at end-2011 compared with 2.4x at end-2010, and anticipated to increase to 1.8x-2.1x by end-2012. Company's creditworthiness would benefit from FFO gross leverage remaining below 2.0x on a sustainable basis, positive free cash flow across the cycle and development of significant operations in lower risk mining jurisdictions outside Russia. With output of 13.5m oz of silver in 9M11, Polymetal is one of the top five primary silver producers in the world. The company is also one of the leading Russian gold producers with output of 0.307m oz in 9M11. Polymetal's asset portfolio contains more than 50 licenses for deposits, located in Russia and Kazakhstan. ============================= S L O V A K R E P U B L I C ============================= SLOVGLASS POLTAR: Failed Restructuring Prompts Bankruptcy Filing ---------------------------------------------------------------- According to The Slovak Spectator, ASR newswire, citing information in Slovakia's Commercial Journal, reported that Slovglass Poltar, which employed 435 people, has filed for bankruptcy after a failed restructuring attempt. TASR wrote that the company's bankruptcy proceeding was approved by the District Court in Banska Bystrica in late November, the Slovak Spectator notes. The plant began a restructuring plan in early 2011 and was seeking a new investor, which according to EMEL Bratislava, the current owner, would have guaranteed the company's ability to repay debts that reportedly reach EUR1 million, the Slovak Spectator discloses. Slovglass employees have been on compulsory leave for nearly a month, receiving 60% of their salaries, the Slovak Spectator states. Based in the Banska Bystrica region, Slovglass Poltar is a producer of a broad range of crystal glass products as well as utility glassware. ========= S P A I N ========= BANCO CEISS: Moody's Assigns D+ Bank Financial Strength Rating -------------------------------------------------------------- Moody's Investors Service has assigned long and short term debt and deposit ratings of Baa3/P-3 and a standalone Bank Financial Strength Rating of D+ (mapping to Ba1 on the long-term scale) to the new entity Banco de Caja Espana de Inversiones, Salamanca y Soria, S.A. (Banco CEISS). This follows the transfer (effective as of December 2, 2011) of the financial business of the savings bank, Caja Espana de Inversiones, Salamanca y Soria (CEISS) to this new entity. Moody's rates Banco CEISS's dated subordinated debt Ba1 and its preferred shares B2(hyb). All of the ratings of Banco CEISS's are on review for upgrade except the dated subordinated debt, which is currently on review for downgrade. In addition, Moody's rates Banco CEISS's government-guaranteed debt at A1, with a negative outlook. At the same time, Moody's has withdrawn the following ratings of CEISS: (i) the standalone bank financial strength rating (BFSR) of D+ (which mapped to Ba1 on the long-term scale); (ii) the long and short term deposit ratings of Baa3/P-3; and (iii) the long- term issuer rating of Baa3. Ratings Rationale Following the transfer of the financial business, the ratings assigned to Banco CEISS are at the same level as those formerly assigned to CEISS. Subsequent to the segregation of the financial business, CEISS's remaining role will be to manage the social welfare projects financed through dividends paid by Banco CEISS upon completion of the transfer; it also acts as the holding company of Banco CEISS. As a result of the transfer of CEISS's assets and liabilities, the debt obligations of the savings bank have been assumed by the new entity, Banco CEISS. All of CEISS's other ratings have subsequently been withdrawn. The constitution of Banco CEISS is an intermediate step towards the merger of CEISS with Unicaja (rated A1/P-1/C+ RUR Down), which the assemblies of both entities approved in the month of September and which is expected to be completed during the first quarter of 2012. Following this announcement, Moody's placed all of CEISS's ratings under review for upgrade, as the rating agency considered that the new group is likely to have stronger financial fundamentals relative to those currently displayed by CEISS. POTENTIAL TRIGGERS FOR A DOWNGRADE/UPGRADE A downgrade of CEISS's standalone rating is currently very unlikely given the review for upgrade of the rating. However, downward pressure could be exerted on CEISS's standalone credit strength following a (i) material deterioration of its liquidity position; (ii) greater-than-expected weakening in its risk- absorption capacity which could put pressure on its capital levels; and/or (iii) significant obstacles in the merger process with Unicaja that would ultimately result in a failure to complete it. The entity's debt and deposit ratings are linked to the standalone BFSR, and any change to the BFSR would likely also affect these ratings. An upgrade of CEISS's standalone rating could be driven by (i) an enhancement of its risk-absorption capacity resulting from the merger with Unicaja; (ii) an improved liquidity position, with normalized access to wholesale funding; and (iii) a reduction of its exposure to real-estate and related assets. An improvement in the economic and overall operating environment could also positively affect CEISS's BFSR and its senior debt and deposit ratings. PRINCIPAL METHODOLOGIES The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007, and Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt published in November 2009. Headquartered in Leon, Spain, CEISS reported total consolidated assets of EUR44.2 billion as of September 30, 2011. TDA 24: Fitch Puts 'Bsf' Rating on Class B Notes on Watch Neg. -------------------------------------------------------------- Fitch Ratings has placed four Spanish RMBS transactions with exposure to loans originated by Credifimo on Rating Watch Negative (RWN). The rating action was triggered by the findings of an audit of the TDA 28 portfolio. Fitch understands that the portfolio of loans in TDA 28 was audited and that more than 1,700 loans, equivalent to EUR173.9 million (62% of the aggregate current balance of the securitized portfolio), were identified as not having been originated in compliance with the transaction documentation. The non-compliant loans were originated by Credifimo, which contributed 44% of the overall portfolio's loan balance at closing. According to a statement published on the SPV management company's (ie. Titulizacion de Activos; TdA) website, Credifimo was asked to replace these loans, but as no such action was taken, TdA will bring legal proceedings against Credifimo. Credifimo, which was acquired by Banca Civica ('BBB+'/Stable/'F2'), is the originator and servicer of loans in three other Spanish RMBS transactions: TDA 24, 25 and 27. The portion of Credifimo loans in these transactions varied between 17.8% and 76.2% of the original collateral. The loans in these portfolios originated by Credifimo have, on average, shown weaker performance and this has been a key driver of the negative rating actions previously taken on these transactions. Fitch is concerned that the instances of non-compliance in TDA 28 could be repeated in the other RMBS transactions with Credifimo loans, which is why all of their tranches rated above 'CCCsf' have been placed on RWN. The transactions have seen levels of defaults ranging between 5.1% and 17.5% of the original portfolio balances of TDA 24 and TDA 28, respectively, and currently have technical principal deficiency ledgers representing as much as 15% of class A in TDA 25, as estimated by Fitch. The agency will aim to resolve the RWN following receipt of further information on the nature and materiality of the non- compliance. All tranches rated 'CCCsf' or below are unaffected by the current rating action. The rating actions are as follows: TDA 24: -- Class A1 (ISIN ES0377952009) 'BBBsf'; placed on RWN -- Class A2 (ISIN ES0377952017) 'BBBsf'; placed on RWN -- Class B (ISIN ES0377952025) 'Bsf'; placed on RWN -- Class C (ISIN ES0377952033) 'CCCsf'; Recovery Estimate 0% -- Class D (ISIN ES0377952041) 'CCsf'; Recovery Estimate 0% TDA 25: -- Class A (ISIN ES0377929007) 'BBsf'; placed on RWN -- Class B (ISIN ES0377929015) 'CCCsf'; Recovery Estimate 0% -- Class C (ISIN ES0377929023) 'CCsf'; Recovery Estimate 0% -- Class D (ISIN ES0377929031) 'CCsf'; Recovery Estimate 0% TDA 27: -- Class A2 (ISIN ES0377954013) 'BBB-sf'; placed on RWN -- Class A3 (ISIN ES0377954021) 'BBB-sf'; placed on RWN -- Class B (ISIN ES0377954039) 'BBsf'; placed on RWN -- Class C (ISIN ES0377954047) 'Bsf'; placed on RWN -- Class D (ISIN ES0377954054) 'CCCsf'; Recovery Estimate 0% -- Class E (ISIN ES0377954062) 'CCsf'; Recovery Estimate 0% -- Class F (ISIN ES0377954070) 'CCsf'; Recovery Estimate 0% TDA 28 -- Class A (ISIN ES0377930005) 'BBsf'; placed on RWN -- Class B (ISIN ES0377930013) 'CCCsf'; Recovery Estimate 0% -- Class C (ISIN ES0377930021) 'CCsf'; Recovery Estimate 0% -- Class D (ISIN ES0377930039) 'CCsf'; Recovery Estimate 0% -- Class E (ISIN ES0377930047) 'CCsf'; Recovery Estimate 0% -- Class F (ISIN ES0377930054) 'CCsf'; Recovery Estimate 0% * SPAIN: Government Mulls Bank Cleanup Plans -------------------------------------------- Jonathan House and Christopher Bjork at Dow Jones Newswires report that Spain's incoming prime minister, intent on curing the country's ailing banking sector, is considering cleanup plans that could dwarf the cost of previous efforts, including the creation of a state-funded "bad bank" to acquire toxic assets or a move to force banks to dramatically boost loan-loss reserves. According to Dow Jones, Prime Minister-elect Mariano Rajoy has said he wants to speed up the process of dealing with EUR176 billion (US$236 billion) of impaired real-estate assets from Spain's housing bust, although he played down the potential cost of his plans ahead of last month's elections. Dow Jones notes that some people close the situation say the fastest way to deal with the problem would be to create a bad bank that purchases the impaired assets from lenders at discounted prices. This would force the institutions to recognize losses, Dow Jones says. It also would likely undermine their solvency ratios and require further funds to shore up their capital bases, according to Dow Jones. According to analysts at Morgan Stanley, Spain could acquire the entire EUR176 billion pile of impaired real-estate assets at the 58% discount applied by Ireland's bad bank, or a cost of EUR73.9 billion, Dow Jones discloses. This could be funded by swapping new government debt for the banks' soured real-estate assets, Dow Jones states. However, the state would have to raise sufficient funds from investors to provide the banks with an estimated EUR28.5 billion in new capital to absorb losses that the banks would take in selling the assets at a steep discount, Dow Jones notes. In all, the cost of the plan to the Spanish state could be EUR102.4 billion, or around 10% of Spanish GDP, Dow Jones discloses. Still, if the EUR28.5 billion proves difficult to raise from private investors, given current market conditions, Mr. Rajoy, as cited by Dow Jones, has said he is open to the idea of requesting funds from the European Financial Stability Facility, the euro zone's bailout fund, to help finance the new capital needs. That is one of the facility's new mandates after it was revamped earlier this year, Dow Jones relates. =========== S W E D E N =========== SAAB AUTOMOBILE: GM Won't Back Proposed Ownership Structure ----------------------------------------------------------- Ben Klayman and Gilbert Kreijger at Reuters report that General Motors Co. said on Tuesday it would not support a proposed ownership structure for Saab Automobile that included a Chinese bank, moving the Swedish auto company closer to liquidation. "We have reviewed Saab's proposed changes regarding the sale of the company," Reuters quotes GM spokesman James Cain as saying in a statement. "Nothing in the proposal changes GM's position. We are unable to support the transaction." GM has said it would be difficult to support a sale of Saab that hurts GM's competitive position in China and other key markets, Reuters relates. According to Reuters, without GM's technology licenses and production contract, analysts have said, Saab would be unable to continue in its present form. When asked about GM's rejection, Swedish Automobile Chief Executive Victor Muller, as cited by Reuters, said in a text message, "There is always Plan B." He said it was too early to provide details, Reuters notes. As reported by the Troubled Company Reporter-Europe on Dec. 7, 2011, Bloomberg News related that Swedish Automobile NV, the owner of Saab, said it's in talks to sell a stake to an unidentified Chinese Bank to keep the carmaker in business. Swedish Automobile said in a statement on Monday that the talks also involve China's Zhejiang Youngman Lotus Automobile Co. to enable Saab to pay November wages and continue its reorganization, Bloomberg disclosed. It said that the outcome of the negotiations is uncertain and an agreement would be subject to approval by stakeholders, Bloomberg noted. The statement followed a Reuters report on Monday that said Youngman and Saab's owner agreed that Bank of China Ltd. (3988) would join as part- owner of the carmaker, Bloomberg recounted. The report was subsequently corrected to say a Chinese bank would replace Pang Da Automobile Trade Co. as an investor and own just under 50% of the carmaker together with Youngman, according to Bloomberg. Pang Caiping, who heads Youngman's negotiations team for Saab, on Monday said that the company hasn't held talks with Bank of China, Bloomberg disclosed. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. SAAB AUTOMOBILE: Administrator Wants to Terminate Reorganization ---------------------------------------------------------------- Swedish Automobile N.V. on Dec. 7 disclosed that it has been informed that the administrator of the reorganization, Guy Lofalk, will apply for termination of the voluntary reorganization of Saab Automobile AB and two subsidiaries with the District Court in Vanersborg, Sweden. Saab Automobile and its creditors have approximately five to six days to submit their view to the District Court before the Court takes a final decision about termination of the reorganization. The management of Saab Automobile will consider future steps and continues the current discussions with Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganization. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. * SWEDEN: Corporate Failures Up 4% in November 2011 --------------------------------------------------- According to SeeNews, data by business and credit information agency Upplysningscentralen (UC) AB showed that the number of corporate failures in Sweden went up 4% year-on-year to 588 in November 2011. =========================== U N I T E D K I N G D O M =========================== BLACKS LEISURE: Seeks White Knight Investor to Rescue Firm ---------------------------------------------------------- BBC News reports that Blacks Leisure has issued an appeal for a white knight investor to rescue it by buying the firm or one of its brands. According to BBC, the company said it was making the appeal after meeting major shareholders and some potential investors as part of a capital-raising exercise. Blacks warned last month that sales in the crucial Christmas period would be weaker than had been expected, BBC recounts. Blacks, as cited by BBC, said it had the support of Royal Bank of Scotland, its main lender. Blacks currently has GBP36 million of net bank debt, BBC discloses. The firm has appointed accountants KPMG to find potential buyers, BBC relates. It said it had obtained a waiver from the takeover panel to ensure that any potential buyer can remain anonymous and avoid rules that would normally compel it to make a formal offer within 28 days, BBC notes. Blacks Leisure is an outdoor clothing and equipment retailer. The company operates about 300 shops under the Blacks and Millets brands. CONVERS SPORTS: WRC Chiefs Hope to Secure Backing ------------------------------------------------- The Press Association reports that commercial rights holders North One Sport say they are "optimistic" of finding investment to secure the future of the World Rally Championship after their parent company went into administration. As reported in the Troubled Company Reporter - Europe on Dec. 1, 2011, SkySports said that Convers Sports Initiatives has been placed into administration with its owner Vladimir Antonov resigning as chairman and director of Portsmouth Football Club with immediate effect. The Press Association recalls that in 2010, the FIA, motorsport's world governing body, awarded North One Sport a 10-year contract for the media rights to the WRC until 2020. The company was then purchased by CSI earlier this year, the report relates. Although North One Sport is not in administration themselves, there is a need for investment to be secured with the 2012 season set to get under way in Monte Carlo in mid-January, according to The Press Association. The Press Association reveals that reports had suggested that the competition's future was in the balance and that the FIA may be forced to step in and take control of the championship, which has existed since 1973, but CSI administrators UHY Hacker Young had previously stated they were confident of buyers being found for all CSI subsidiaries. North One Sport also revealed they are already in "detailed discussions" with several potential buyers, The Press Association adds. H&L GARAGES: Goes Into Administration, Cuts 176 Jobs ----------------------------------------------------- Grimsby Telegraph reports that H&L Garages Limited has gone into administration cutting the jobs of its 176 staff from its total of 194 current hires in the process. The report relates that 61 of the 70 employed at the company's headquarters in South Killingholme alone. "BDO LLP business restructuring partners, Paul Bates and Graham Newton, were appointed Joint Administrators over H & L Garages Limited on Friday, Dec. 2, 2011 . . . . The company ceased trading on [the same day]. . . . The Joint Administrators are now seeking a buyer for the assets of the company," BDO LLP said in a statement obtained by Grimsby Telegraph. "Unfortunately the economic climate and difficult trading conditions adversely affected the business. . . . The joint administrators are taking all necessary steps to mitigate risks to stakeholders and, going forward, will seek to maximize recoveries for the benefit of creditors," the report quoted Mr. Bates as saying. Headquartered in South Killingholme, H&L Garages Limited, is a Mercedez Benz dealer. It employs almost 200 workers across sites in South Killingholme, Lincoln, Hull, Boston and York. MF GLOBAL: Administrators Recover US$500MM of Client Assets ----------------------------------------------------------- MF Global UK Ltd.'s administrators recovered about half of the estimated US$1 billion of customer funds frozen when the brokerage firm collapsed on October 31, Kit Chellel of Bloomberg News reported. KPMG LLP, which oversees the administration of MF Global UK, said it hoped to return some money to the brokers' clients by March, according to the report. The final amount to be recovered will depend on how much can be taken back from the third-party financial firms which held money for MF Global UK's clients, Richard Heis, a partner at KPMG LLP, stated, the report relayed. KPMG also did not confirm The New York Times' Nov. 29 report that about US$200 million may have been found at JPMorgan Chase in the UK, Bloomberg noted. The administrators did not believe the US$200 million found would affect recoveries for U.K. clients, Bloomberg said. "Based on the information available, the joint special administrators are not aware of any threat to the segregated money held on behalf of MF Global U.K. clients arising from the matters set out in the New York Times report," KPMG said in an e- mailed statement to Bloomberg. SUPERGLASS: To Invest GBP6.5 Million to Upgrade Factory ------------------------------------------------------- The Scotsman reports that Superglass on Monday unveiled plans to invest GBP6.5 million of the proceeds of last week's share placing in upgrading its factory in Stirling. Speaking as the Scottish firm also revealed a GBP600,000 loss for the year to August 31, chief executive Alex McLeod, as cited by the Scotsman, said the investment would be "transformational". Once completed in March 2013, the company expects upgrades to machinery to deliver annual cost savings of up to GBP3.6 million while also improving the quality of its product and raising production capacity by 10%, the Scotsman says. Superglass was unable to follow suit because it was struggling under a debt burden totaling more than GBP17 million, the Scotsman notes. That was also dealt with last week in a restructuring that saw Clydesdale Bank swap GBP12.15 million of debt into convertible shares, the Scotsman recounts. The Stirling-based firm will enjoy a two-year repayment holiday on its remaining GBP5.1 million of borrowings, which will not be subject to covenants during that time, according to the Scotsman. At the same time, a share placing raised GBP8 million after costs and the company was recently offered a Regional Selective Assistance grant of up to GBP2 million by Scottish Enterprise, the Scotsman discloses. Superglass is an insulation firm. TUBE PLASTICS: Goes Into Administration, 100 Jobs at Risk --------------------------------------------------------- The Press Association reports that Tube Plastics Limited, better known as TP Activity Toys, has gone into administration putting 100 jobs at risk. The company called in business recovery firm Geoffrey Martin to act as administrator, according to The Press Association. The report notes that a spokesman for Geoffrey Martin said the company's financial difficulties stemmed from increasing overheads and its inability to carry out a refinancing. The Press Association notes Mr. Martin hopes to sell the business as a going concern and said "every effort" will be made to fulfill orders for Christmas. Customers awaiting deliveries are urged to get in contact, the report relays. The administration does not include the company's unit, Muddy Puddles, which supplies children's outdoor clothing. Kidderminster-based Tube Plastics Limited is a supplier of trampolines and climbing frames for retailers including Tesco, John Lewis and Early Learning Centre. WHITTLEBURY HALL: Owners Out of Administration, Trades Normally --------------------------------------------------------------- BBC News reports that Whittlebury Hall's new directors said the hotel is now trading as normal again. Whittlebury Hall came out of administration on last week, according to BBC News. The hotel will trade under a new company name, Whittlebury Hall and Spa Limited, the report notes. As reported in Troubled Company Reporter-Europe on Sept. 19, 2011, AboutMyArea said that Whittlebury Hall's business continued to trade despite going into administration as a buyer is sought. Peter Holder, Kevin Coates, Nick Cropper, and Anne O'Keefe of corporate advisory and restructuring specialists Zolfo Cooper were appointed Joint Administrators of Whittlebury Hall Limited (the Company) on Sept. 14, 2011. Administrators were appointed following a period of cash flow difficulties, according the report. Whittlebury Hall Limited owns and operates Whittlebury Hall Hotel, which is a 211-room hotel, spa and management training centre. It is located next to the Silverstone Circuit near Towcester, Northamptonshire. * UK: Business Sale Report Reveals Map of Distressed Firms ---------------------------------------------------------- The Business Sale Report has launched the first interactive UK map that details the locations of all distressed companies that have recently collapsed into administration. The "mash-up" -- seen at http://www.business- sale.com/administrations/map -- pulls in details of distressed businesses from the Business Sale Report's in-house databases and displays the information with the help of Google Maps technology. It succeeds in painting a more vibrant picture of potential target businesses, beyond the black and white of text listings and can reveal interesting geographical clusters. An additional layer of information can be seen subscribers to the Business Sale Report, who can zoom right in on potential targets and view financial and contact details. Stephen Ideh, Marketing Manager at Business Sale Report, said that every detail is crucial when it comes to the buying and selling of businesses, and the map provides a crucial -- and until now unfulfilled -- service. "This map is the first in the UK to provide a comprehensive, geographic picture of businesses that are facing distress," he said. "There is no other service like it, but the benefits of it are abundantly clear. Prospective buyers of distressed companies and assets want to be able to see at a glance where the latest business administrations are in their region, and this allows them to do that. They can also identify clusters of distressed businesses in the UK and also, thanks to the labeling on the map, will be able to see whether there are other types of business in which they may be interested, elsewhere in the UK." Businesses are flagged up with pin-pointers on the map which, when clicked on, bring up more of the information about the particular business that is contained in its full listing. Many entrepreneurs monitor the distressed business marketplace for competitors who have been placed into administration. They capitalize on their competitor's failings by purchasing the business, bidding for customer databases, equipment and property or taking over the beleaguered company's profitable contracts. When a company faces severe financial difficulties, one or more of its creditors (or the company's own directors) can force it into administration. The administrator, a licensed insolvency practitioner, will want to rescue the business as a growing concern or achieve a better result for the creditors than if it they put the business into liquidation. This is often achieved by selling the business, or, if this is not possible, by selling the company's assets. In many instances, the business is still trading. The Business Sale Report Administrations Map is already live at http://www.business-sale.com/administrations/map,with the full details of the businesses available to subscribers. =============== X X X X X X X X =============== * S&P Puts Eurozone Sovereign Ratings on CreditWatch Negative ------------------------------------------------------------- Standard & Poor's Ratings Services placed its long-term sovereign ratings on 15 members of the European Economic and Monetary Union (EMU or eurozone) on CreditWatch with negative implications. "We have also maintained the CreditWatch negative status of our long-term rating on Cyprus and placed its short-term ratings on CreditWatch with negative implications. The ratings on Greece have not been placed on CreditWatch. The ratings on the eurozone sovereigns are listed," S&P said. "The CreditWatch placements are prompted by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole," S&P said. S&P believes that these systemic stresses stem from five interrelated factors: (1) Tightening credit conditions across the eurozone; (2) Markedly higher risk premiums on a growing number of eurozone sovereigns, including some that are currently rated 'AAA'; (3) Continuing disagreements among European policy makers on how to tackle the immediate market confidence crisis and, longer term, how to ensure greater economic, financial, and fiscal convergence among eurozone members; (4) High levels of government and household indebtedness across a large area of the eurozone; and (5) The rising risk of economic recession in the eurozone as a whole in 2012. "Currently, we expect output to decline next year in countries such as Spain, Portugal and Greece, but we now assign a 40% probability of a fall in output for the eurozone as a whole," S&P said. "Our CreditWatch review of eurozone sovereign ratings will focus on three of the five key factors that form the core of our sovereign ratings methodology: the 'political,' 'external,' and 'monetary' scores we assign to the governments in the eurozone (see 'Sovereign Government Rating Methodology And Assumptions', published June 30, 2011). Our analysis of 'political dynamics' will focus on both country-specific and eurozone-wide issues that appear to us to be limiting the effectiveness of efforts to resolve the market confidence crisis. Our analysis of 'external liquidity' will focus on the borrowing requirements of both eurozone governments and banks. Our analysis of 'monetary flexibility' will focus on ECB policy settings to address the economic and financial stresses the countries in the eurozone are increasingly facing," S&P said. "We expect to conclude our review of eurozone sovereign ratings as soon as possible following the EU summit scheduled for Dec. 8 and 9, 2011. Depending on the score changes, if any, that our rating committees agree are appropriate for each sovereign, we believe that ratings could be lowered by up to one notch for Austria, Belgium, Finland, Germany, Netherlands, and Luxembourg, and by up to two notches for the other governments," S&P said. "Our ratings on Greece (Hellenic Republic; CC/Negative/C) are not affected by the actions, as a 'CC' rating under our rating definitions connotes our belief that there is a relatively high near-term probability of default," S&P said. "We are publishing separate media releases with the rationale for each rating action on the 16 CreditWatch actions. We are also publishing the article: 'Credit FAQ: Factors Behind Our Placement of Eurozone Governments on CreditWatch,'" S&P said. Following the CreditWatch listings, Standard & Poor's will issue separate media releases concerning affected ratings on the funds, government-related entities, financial institutions, insurance companies, public finance, and structured finance sectors in due course. Ratings List To From Long-term ratings on CreditWatch negative Austria (Republic of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ Belgium (Kingdom of) Sovereign Credit Rating AA/Watch Neg/A-1+ AA/Negative/A-1+ Finland (Republic of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ France (Republic of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ Germany (Federal Republic of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ Luxembourg (Grand Duchy of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ Netherlands (The) (State of) Sovereign Credit Rating AAA/Watch Neg/A-1+ AAA/Stable/A-1+ Long- and short-term ratings on CreditWatch negative Estonia (Republic of) Sovereign Credit Rating AA-/Watch Neg/A-1+ AA-/Stable/A-1+ Ireland (Republic of) Sovereign Credit Rating BBB+/Watch Neg/A-2 BBB+/Stable/A-2 Italy (Republic of) Sovereign Credit Rating A/Watch Neg/A-1 A/Negative/A-1 Malta (Republic of) Sovereign Credit Rating A/Watch Neg/A-1 A/Stable/A-1 Portugal (Republic of) Sovereign Credit Rating BBB-/Watch Neg/A-3 BBB-/Negative/A-3 Slovak Republic Sovereign Credit Rating A+/Watch Neg/A-1 A+/Positive/A-1 Slovenia (Republic of) Sovereign Credit Rating AA-/Watch Neg/A-1+ AA-/Stable/A-1+ Spain (Kingdom of) Sovereign Credit Rating AA-/Watch Neg/A-1+ AA-/Negative/A-1+ Short-term ratings on CreditWatch negative, long-term ratings still on CreditWatch negative Cyprus (Republic of) Sovereign Credit Rating BBB/Watch Neg/A-3 BBB/Watch Neg/A-3 The ratings on France, Germany, The Netherlands, Italy, and Belgium are unsolicited. * S&P's Global Corporate Default Tally Rises to 43 Issuers ---------------------------------------------------------- Two U.S.-based issuers defaulted last week, raising the tally of global corporate default in 2011 to 43, said an article published Dec. 1 by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (Nov. 23 - 30, 2011)." The first default, The PMI Group Inc., filed for Chapter 11 on Nov. 28, three months after the Arizona Department of Insurance placed the company's subsidiary, PMI Mortgage Insurance Co., under supervision. As a result, Standard & Poor's Rating Services lowered the rating on the company to 'R' -- a rating tantamount to default under Standard & Poor's criteria. Standard & Poor's lowered its rating on the second issuer, AMR Corp., to 'D' after the company and its subsidiary, American Airlines Inc., filed for Chapter 11 bankruptcy on Nov. 29. Of the total defaulters this year, 32 are based in the U.S., three are based in New Zealand, two are in Canada, and one each is in the Czech Republic, Greece, France, Israel, Italy, and Russia. Of the defaulters by this time in 2010, 56 were U.S.- based issuers, 10 were from the other developed region (Australia, Canada, Japan, and New Zealand), eight were from the emerging markets, and two were European issuers. Seventeen of this year's defaults were due to missed interest or principal payments and eight were due to distressed exchanges -- both of which were among the top reasons for defaults in 2010. Bankruptcy filings followed with nine defaults, and regulatory actions accounted for three. Of the remaining defaults, one issuer failed to finalize refinancing on its bank loan, one had its banking license revoked by its country's central bank, another was appointed a receiver, and three were confidential. By comparison, in 2010, 28 defaults resulted from missed interest or principal payments, 25 from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from a regulatory directive, and one from administration. Following a year of record-setting highs in terms of global corporate default statistics, 2010 provided the markets with a noticeable reversal. In 2010, 81 global corporate issuers defaulted, down from the record high of 265 in 2009. None of the 81 defaulters began the year rated investment grade. The debt amount affected by these defaults fell to $95.7 billion, which was also considerably lower than in 2009. * S&P: Global Default Rate Increases After 5 Mos. of Declines ------------------------------------------------------------- The number of global weakest links increased marginally to 128 on Nov. 15 from 124 on Oct. 21, and they have total rated debt of US$193.1 billion, said an article published Dec. 2 by Standard & Poor's Global Fixed Income Research, titled "Global Weakest Links And Default Rates: The Global Default Rate Increased Slightly In October." Weakest links are issuers rated 'B-' and lower with either negative outlooks or ratings on CreditWatch with negative implications. "So far, 41 issuers have defaulted globally in 2011 through Nov. 15, six of which have defaulted since October," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "These defaulted issuers have combined outstanding debt worth US$69.9 billion." By comparison, 82 issuers defaulted on debt worth US$97.5 billion in 2010, and 264 issuers defaulted on debt worth US$627.7 billion in 2009. "The 12-month-trailing global corporate speculative-grade default rate slightly increased to 1.68% in October from 1.65% in September," said Ms. Vazza. Regionally, the U.S. corporate speculative-grade corporate default rate increased to 2.06% from 1.94%, and the European default rate rose sharply to 1.23% from 0.86%. The default rate in the emerging markets also increased, to 0.58% from 0.52%. The U.S. has the weakest links, with 83, or 64.8% of the global total. By sector, media and entertainment, banks, and forest products and building materials have the greatest concentrations of weakest links. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 * * *