/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/111215.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 15, 2011, Vol. 12, No. 248 Headlines G E R M A N Y MANROLAND AG: Chinese Companies Eye Takeover, Administrator Says H U N G A R Y * HUNGARY: Mandatory Liquidations Initiated at 3.54% of Firms I R E L A N D DA VINCI: Fitch Affirms Rating on Class C Notes at 'Dsf' TBS INTERNATIONAL: Artis Capital Owns 11.9% of Class A Shares K A Z A K H S T A N ALLIANCE BANK: S&P Revises Issuer Credit Rating to 'B-' L A T V I A LATVIJAS KRAJBANKA: Riga City Council Files Insolvency Petition L U X E M B O U R G CODITEL HOLDING: S&P Withdraws 'B' Long-Term Corp. Credit Rating KLEOPATRA LUX: Moody's Lowers Corporate Family Rating to 'Caa3' N E T H E R L A N D S ENDEMOL BV: Two of Largest Lenders Back Debt-for-Equity Swap GENMED HOLDING: Posts US$463,000 Net Loss in Third Quarter P O R T U G A L REDE FERROVIARIA: S&P Puts 'B-' Corp. Credit Rating on Watch Neg. R O M A N I A PRODLACTA BRASOV: Enters Into Insolvency Process R U S S I A ALFA-BANK OJSC: Fitch Rates RUB5-Bil. Sr. Unsec. Bonds at 'BB+' EUROPEAN BEARING: S&P Assigns 'B+' Long-Term Corp. Credit Rating ROSSIYA OJSC: Fitch Affirms B- Insurer Financial Strength Rating * TULA REGION: Fitch Affirms Long-Term Currency Ratings at 'BB-' S P A I N AYT COLATERALES: Fitch Affirms 'BB' Ratings on Three Note Classes BBVA EMPRESAS: Fitch Affirms Rating on Class B Notes at 'BB+sf' SANTANDER CONSUMER: Moody's Assigns 'Ca' Rating to Serie D Note S W E D E N SAAB AUTOMOBILE: Gets Youngman Payment; Dec. 19 Court Hearing Set U N I T E D K I N G D O M BLACKS LEISURE: Rival Retailers Mull Takeover Bid CONSOLIDATED MINERALS: S&P Cuts Corporate Credit Rating to 'B+' DWS INVESTMENT: To Liquidate EUR257 Million Real Estate Fund HALLIWELLS: BDO Applies to be Named Liquidator LA SENZA: Calls In KPMG to Advise on Restructuring THOMAS COOK: To Close 200 Stores Under Turnaround Plan THOMAS COOK: Sells Spanish Hotel Chain to Iberostar THOMAS COOK: Union Lifts Strike Threat at Unit X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* ============= G E R M A N Y ============= MANROLAND AG: Chinese Companies Eye Takeover, Administrator Says ---------------------------------------------------------------- Rajiv Sekhri at Bloomberg News, citing Frankfurter Allgemeine Zeitung, reports that Manroland AG's insolvency administrator Werner Schneider is talking with several parties interested in buying the company. According to Bloomberg, Mr. Schneider told the newspaper there are companies from China and other emerging countries interested in a complete takeover of Manroland. Meanwhile, Sheenagh Matthews at Bloomberg News, citing Handelsblatt, relates that Manroland's insolvency administrator Werner Schneider said talks with the company's customers show they are standing by the German company. The German newspaper, citing an interview with Mr. Schneider, said that the danger that orders will be canceled has been averted for the time being, Bloomberg relates. Handelsblatts said that Manroland is seeking a strategic investor with the help of Lazard Ltd., Bloomberg notes. Manroland AG is an Offenbach-based printing-press maker. As reported by the Troubled Company Reporter-Europe on Nov. 28, 2011, Bloomberg News related Manroland filed to open insolvency proceedings with the district court in Augsburg, Germany. "The decision to file for insolvency was triggered by another dramatic downturn in incoming orders which can be noticed since mid-July and has recently accelerated," Bloomberg quotes Manroland as saying in a statement. "Customers are finding it far more difficult to obtain financing in the aftermath of the financial crisis." ============= H U N G A R Y ============= * HUNGARY: Mandatory Liquidations Initiated at 3.54% of Firms ------------------------------------------------------------- According to MTI-Econews, business daily Napi Gazdasag, citing data compiled by business information provider Dun and Bradstreet (D+B), said on Wednesday that mandatory liquidation or bankruptcy protection procedures were initiated at 3.54% of Hungarian companies this year, up from 3.21% in 2010. The paper said that the rate was highest, at over 6%, in the construction sector. ============= I R E L A N D ============= DA VINCI: Fitch Affirms Rating on Class C Notes at 'Dsf' -------------------------------------------------------- Fitch Ratings has placed Da Vinci Synthetic plc's class A and B notes Rating Watch Negative (RWN) and affirmed the class C notes, as follows: -- EUR25.9m Class A floating-rate notes: 'B-sf'; placed on RWN -- EUR20.8m Class B floating-rate notes: 'CCCsf'; placed on RWN -- EUR7.7m Class C floating-rate notes: affirmed at 'Dsf'; Recovery Estimate 0% The rating actions follow American Airline's announcement that it has filed for bankruptcy protection under Chapter 11 of the US bankruptcy code. As of the last servicer report in September 2011, the transaction's exposure to American Airlines was US$8.9 million (equivalent to EUR7.09 million at the transaction specific exchange rate). The transaction is a synthetic securitization of a portfolio of financial leases and loans secured on aircraft and associated aircraft collateral. Merrill Lynch International Bank (MLI) entered into a credit default swap (CDS) with Intesa Sanpaolo (IntesaSP) under which it sells protection on a reference portfolio of up to US$650 million. All financial lease or loan obligations (the reference portfolio) relate to the financing or refinancing of aircrafts. Under the terms and conditions of the CDS documentation, bankruptcy of an airline constitutes a credit event if the reference claims do not continue to be serviced by the relevant airline or the reference obligations become accelerated. Under the CDS, Intesa SP has a period of 180 days from when it becomes aware that a credit event has occurred to issue a credit event notice. Upon delivery of the credit event notice, IntesaSP has a maximum of one year to delivery the required certifications to the seller of the CDS counterparty to prove that the credit event is eligible for payment. In such event, it would trigger the loss determination mechanism, and the ultimate loss for the transaction will depend on the value realised from the respective aircrafts. American Airline's reference claims related to two MD- 83 aircraft, which Fitch expects to have limited recovery value. Hence if a credit event notice is served, Fitch expects the class C notes to suffer a loss of approximately EUR7 million. The agency will continue to monitor this transaction, the airline sector and the market value of aircrafts and take rating action on the notes as appropriate. The agency will review the transaction as soon as new information with regards to the course of action taken by IntesaSP made available to the agency allows for a detailed and differentiated reassessment of the transaction's performance. TBS INTERNATIONAL: Artis Capital Owns 11.9% of Class A Shares ------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Artis Capital Management, L.P., disclosed that, as of Dec. 9, 2011, it beneficially owns 2,111,147 shares of Class A ordinary shares of TBS International representing 11.96% of the shares outstanding. The percentage is based on 17,654,969 Shares of Class A Ordinary Shares outstanding as of Nov. 1, 2011, as reported in the Company's quarterly report on Form 10-Q for the period ended Sept. 30, 2011, filed with the SEC on Nov. 9, 2011. A full-text copy of the Schedule 13G is available for free at: http://is.gd/rlwtRN About TBS International plc Dublin, Ireland-based TBS International plc (NASDAQ: TBSI) -- http://www.tbsship.com/-- provides worldwide shipping solutions to a diverse client base of industrial shippers through its Five Star Service: ocean transportation, projects, operations, port services and strategic planning. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers, including specialized heavy- lift vessels and newbuild tonnage. TBS has developed its franchise around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East. The Company reported a net loss of US$247.76 million on US$411.83 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of US$67.04 million on US$302.51 million of total revenue during the prior year. The Company also reported a net loss of US$55.16 million on US$282.64 million of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of US$29.21 million on US$311.06 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed US$659.28 million in total assets, US$409.77 million in total liabilities and US$249.51 million in total shareholders' equity. PricewaterhouseCoopers LLP expressed substantial doubt about the Company's ability to continue as a going concern. PwC believes that the Company will not be in compliance with the financial covenants under its credit facilities during 2011, which under the agreements would make the debt callable. According to PwC, this has created uncertainty regarding the Company's ability to fulfill its financial commitments as they become due. As reported in the TCR on Feb. 8, 2011, TBS International on Jan. 31, 2011, announced that it had entered into amendments to its credit facilities with all of its lenders, including AIG Commercial Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and syndicates led by Bank of America, N.A., The Royal Bank of Scotland plc and DVB Group Merchant Bank (the "Credit Facilities"). The amendments restructure the Company's debt obligations by revising the principal repayment schedules under the Credit Facilities, waiving any existing defaults, revising the financial covenants, including covenants related to the Company's consolidated leverage ratio, consolidated interest coverage ratio and minimum cash balance, and modifying other terms of the Credit Facilities. The Company currently expects to be in compliance with all financial covenants and other terms of the amended Credit Facilities through maturity. As a condition to the restructuring of the Company's credit facilities, three significant shareholders who also are key members of TBS' management agreed on Jan. 25, 2011, to provide up to US$10 million of new equity in the form of Series B Preference Shares and deposited funds in an escrow account to facilitate satisfaction of this obligation. In partial satisfaction of this obligation, on Jan. 28, 2011, these significant shareholders purchased an aggregate of 30,000 of the Company's Series B Preference Shares at US$100 per share directly from TBS in a private placement. =================== K A Z A K H S T A N =================== ALLIANCE BANK: S&P Revises Issuer Credit Rating to 'B-' ------------------------------------------------------- Standard & Poor's Ratings Services revised its ratings on 11 Kazakhstan-based banks after applying its new bank ratings criteria, which was published on Nov. 9, 2011. "We've listed the ratings on these banks and any changes that resulted from applying our new criteria in the ratings list. All ratings placed on CreditWatch will be reviewed within 90 days," S&P said. "We will publish individual research updates on each bank including a list of ratings on affiliated rated entities, as well as the ratings by debt type -- senior, subordinated, junior subordinated, and preferred stock. The research updates will be available at www.standardandpoors.com/AI4FI and on RatingsDirect. Ratings on specific issues will be available on RatingsDirect and www.standardandpoors.com following release," S&P said. Ratings List Kazakhstan Banks To From Alliance Bank JSC Issuer credit rating B-/Stable/C B-/Stable/C Kazakhstan national scale rating kzBB- kzBB- Halyk Savings Bank of Kazakhstan Issuer credit rating BB/Stable/B B+/Stable/B HSBC Bank Kazakhstan JSC Issuer credit rating BBB/Stable/A-3 BBB/Stable/A-3 Kazakhstan national scale rating kzAA+ kzAA+ JSC AsiaCredit Bank Issuer credit rating B/Negative/B B/Stable/B Kazakhstan national scale rating kzBB+ kzBB+ JSC Delta Bank Issuer credit rating B/Stable/B B/Stable/B Kazakhstan national scale rating kzBB+ kzBB+ JSC Eurasian Bank Issuer credit rating B+/Stable/B B/Stable/B Kazakhstan national scale rating kzBBB kzBB+ JSC Nurbank Issuer credit rating B/Watch Neg/C B/Stable/C Kazakhstan national scale rating kzBB+/Watch Neg kzBB+ KazInvestBank Issuer credit rating B-/Negative/C B-/Negative/C Kazakhstan national scale rating kzBB- kzBB- Kazkommertsbank (JSC) Issuer credit rating B+/Stable/B B/Stable/C Temirbank JSC Issuer credit rating B/Stable/B B/Stable/B Kazakhstan national scale rating kzBB kzBB Tsesna Bank Issuer credit rating B/Negative/C B/Stable/C Kazakhstan national scale rating kzBB kzBB+ =========== L A T V I A =========== LATVIJAS KRAJBANKA: Riga City Council Files Insolvency Petition --------------------------------------------------------------- Latvian News Agency LETA said the Riga Regional Court decided Tuesday to launch insolvency proceedings against "Latvijas Krajbanka" following a petition from the Financial and Capital Market Commission. The regional court turned down the Financial and Capital Market Commission's suggestion to appoint Ints Goldmanis the bank's administrator, and told the Commission to nominate another candidate for the bank's administrator until December 16, as the court's press secretary Aigars Berzins informed LETA. The court also ruled that the bank's property would be arrested. As reported in Troubled Company Reporter-Europe on Dec. 5, 2011, Reuters said Latvia's banking regulator had filed bankruptcy papers on midsize lender Latvijas Krajbanka, adding that it is keeping a close eye on several other banks. "The Financial and Capital Market Commission [Thurs]day submitted to the Riga district court an application about Latvijas Krajbanka's insolvency," Reuters quoted the commission as saying in a statement on its Web site. FKTK head Irena Krumane and board member Janis Placis have resigned amid allegations of mishandling of the collapse of Latvijas Krajbanka, an affiliate of Snoras Bank which Lithuania nationalized earlier this month, Reuters recounted. The FKTK suspended Latvijas Krajbanka, the sixth- largest bank by deposits, on Nov. 21 after neighboring Lithuania nationalized Snoras, Reuters disclosed. Headquartered in Riga, Latvia, AS Latvijas Krajbanka provides commercial banking services to businesses and private individuals in Latvia and the markets of the Commonwealth of Independent States. As of Dec. 31, 2009, AS Latvijas Krajbanka had 115 customer service centers and 190 automated teller machines. AS Latvijas Krajbanka is a subsidiary of AS banka Snoras. =================== L U X E M B O U R G =================== CODITEL HOLDING: S&P Withdraws 'B' Long-Term Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed and then withdrew its 'B' long-term corporate credit rating on Luxembourg-based cable operator Coditel Holding Lux Sarl at the issuer's request. "The rating action follows the completion of Coditel's full refinancing of its capital structure on Dec. 2, 2011, with new bank loans and a mezzanine facility replacing its initial bridge loan. At closing of the transaction, on Dec. 2, 2011, debt leverage was down slightly from that of the initial capital structure and liquidity was adequate, in our opinion. At the time of the withdrawal, the outlook was stable and the company had no rated debt outstanding," S&P said. KLEOPATRA LUX: Moody's Lowers Corporate Family Rating to 'Caa3' --------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating (CFR) and probability of default rating of Kleopatra Lux 1 S.a.r.l. (Kleopatra) to Caa2 and Caa3 respectively from Caa1. The outlook on the ratings remains negative. Kleopatra is the ultimate holding company of Germany-based plastic packaging manufacturer Kloeckner Pentaplast. Ratings Rationale The rating action reflects the possibility of a financial restructuring becoming increasingly likely as the group's debt load appears very high, as indicated by debt/EBITDA of above 10x as of September 2011. Although operating profitability with a Moody's adjusted EBITDA margin of around 11% in the past financial year (ending September 2011) was solid and was even slightly enhanced on the back of a moderate volume recovery, benefits from extensive restructuring measures and additional capacity added, cash generation was negative due to high capex and restructuring costs. In addition, the current weak macroeconomic outlook makes it in Moody's view rather unlikely that, going forward, the company will be able to enhance profit generation sufficiently to allow it to effectively de-lever. As a result of largely stable operating performance over the past years, covenant headroom tightened significantly as test levels ratchet downwards. As such, Moody's cautions that a covenant breach and hence a restructuring of the company's liabilities could become highly likely over the next few months. On a more positive note, Moody's acknowledges that the company's operational performance continues on a rather stable and profitable pattern, which in Moody's view makes a going concern assumption likely. The one notch differential between the company's CFR of Caa2 and the PDR of Caa3 therefore reflects Moody's expectation that any potential financial restructuring will result only in a moderate loss for lenders. In addition, Moody's notes that there is no immediate liquidity pressure, considering the company's extended debt maturity profile and a solid liquidity position, largely consisting of about EUR212 million of cash available per September 2011. However, Moody's cautions that in case of a covenant breach, Kleopatra would be dependent on obtaining a waiver from its lenders or an equity contribution by its shareholder to heal any potential breach to avoid a liquidity shortfall. A covenant breach, if not waived or healed through an equity cure, may trigger the majority of the group's lending arrangements becoming immediately due without Kleopatra having sufficient back-up funds available. The negative outlook reflects Moody's expectation that Kleopatra's ratings could be further downgraded should any financial restructuring that would lead to a loss for lenders be implemented. In addition, Moody's expects operating and financial performance will be negatively impacted by the difficult macroeconomic environment in the group's strongholds of Europe and North America. This will in the view of the rating agency limit any material recovery, as Moody's expects severe competition in both PVC and PET applications to persist, which would suppress potential for margin enhancement. More specifically, Moody's assumes that high leverage, negative net income -- predominantly driven by high interest expense - and declining equity will continue over the next quarters. While Moody's expects that Kleopatra's free cash flow generation, which was negative over the last year, will be turned around to modestly positive territory on the back of lower capex spending, Moody's does not expect positive free cash flow to contribute to any material deleveraging. What Could Change the Rating Down-Up The rating could be downgraded further if negative free cash flow generation were to persist or if the short-term liquidity profile weakened further leading to a debt restructuring with a resulting loss for lenders. Positive rating pressure would increase if Kleopatra manages to remain free-cash-flow positive, with debt/EBITDA levels dropping significantly below 10x on a sustainable basis and EBIT margins approaching the mid-to-high single digits. Downgrades: Issuer: Kleopatra Lux 1 S.a.r.l. -- Probability of Default Rating, Downgraded to Caa3 from Caa1 -- Corporate Family Rating, Downgraded to Caa2 from Caa1 Principal Methodology The principal methodology used in rating Kleopatra was the Global Packaging Manufacturers: Metal, Glass, and Plastic Containers Industry Methodology published in June 2009. Kleopatra Lux 1 S.a.r.l., with legal domicile in Luxemburg, is the ultimate holding company for Kloeckner Pentaplast, a global leader in the manufacturing of rigid plastic films for the pharmaceutical, food, medical, electronics and other packaging industry. The company generated EUR1.1 billion of sales during fiscal year 2011 (ending September), approximately 53% of which came from Europe, 43% from the US, Latin America and Canada, and 4% from its Asian operations. The company is owned by private equity investor Blackstone since a takeover in 2007. ===================== N E T H E R L A N D S ===================== ENDEMOL BV: Two of Largest Lenders Back Debt-for-Equity Swap ------------------------------------------------------------ Isabell Witt at The Scotsman reports that lenders to Endemol will take over the company in a debt-for-equity swap, rejecting Time Warner's latest EUR1 billion (GBP844 million) bid. According to the Scotsman, sources said that the deal will cut the company's EUR2 billion of loans to around EUR550 million. Two of the largest lenders, Royal Bank of Scotland and Lehman Brothers, and two shareholders -- investment firm Cyrte and Goldman Sachs -- have supported the move, ending a deadlock by getting two-thirds of lenders to agree to a deal, the Scotsman discloses. The sources said that Barclays and Endemol's third biggest shareholder, Italian broadcaster Mediaset, are holding out for better terms but do not have enough voting rights to block the restructuring, the Scotsman notes. Endemol's equity would be split among lenders and existing shareholders, depending on the debt each party holds, the Scotsman says. The Scotsman relates that one the sources said existing shareholders would receive around 30%, while the rest would be distributed among hedge funds and bank lenders. According to the Scotsman, a source added that lenders were set to extend a waiver of the covenant breach on Endemol's debt until next year to finalize the restructuring. Endemol B.V. -- http://www.endemol.com/-- is one of the world's leading producers of TV programs best known for its output of hit reality-based programming and game shows such as Deal or No Deal, Big Brother, and Extreme Makeover: Home Edition. The production company also creates scripted dramas and soap operas, and develops digital content for online distribution. It has more than 2,000 programming formats in its library and exports shows to more than 25 countries around the world. Formed in 1994, Endemol is owned by a consortium led by private equity firm Goldman Sachs and Italian television company Mediaset. GENMED HOLDING: Posts US$463,000 Net Loss in Third Quarter ---------------------------------------------------------- Genmed Holding Corp. filed its quarterly report on Form 10-Q, reporting a net loss of US$463,080 on US$0 revenue for the three months ended Sept. 30, 2011, compared with a net loss of US$443,471 on US$0 revenue for the same period of 2010. For the nine months ended Sept. 30, 2011, the Company has reported a net loss of US$2.37 million on US$nil revenue, compared with a net loss of US$1.71 million on US$nil revenue for the corresponding period last year. At Sept. 30, 2011, the Company's balance sheet showed US$1.29 million in total assets, US$2.94 million in total liabilities, and a stockholders' deficit of US$1.65 million. As reported in the TCR on April 27, 2011, Meyler & Company, LLC, in Middletown, N.J., expressed substantial doubt about Genmed Holding's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred cumulative net losses of US$69.99 million since inception, and had net losses of US$7.73 million and US$8.59 million for the years ended Dec. 31, 2010, and 2009. A copy of the Form 10-Q is available for free at: http://is.gd/tpbqzc Based in The Netherlands, Genmed Holding Corp. through its wholly owned Dutch subsidiary Genmed B.V. is focusing on the delivery of low cost generic medicines directly to distribution chains throughout Europe. Generic medicines, which become available when the originator medicines patents has expired, are, due to continuing governmental pressure and new insurance policies, increasingly used as equally effective alternatives to higher- priced originator pharmaceuticals by general practitioners, specialists and hospitals. =============== P O R T U G A L =============== REDE FERROVIARIA: S&P Puts 'B-' Corp. Credit Rating on Watch Neg. ----------------------------------------------------------------- As previously announced, on Dec. 8, 2011, Standard & Poor's Ratings Services placed its 'B-' long-term corporate credit, 'B-' nonguaranteed issue, and 'BBB-' guaranteed issue ratings on Portuguese rail infrastructure manager Rede Ferroviaria Nacional REFER, E.P.E. (REFER) on CreditWatch with negative implications. Rationale The CreditWatch placement on REFER follows that on the Republic of Portugal (BBB-/Watch Neg/A-3) on Dec. 5, 2011. (See "Portugal's 'BBB-/A-3' Ratings Placed On CreditWatch Negative," on RatingsDirect on the Global Credit Portal.) "In our view, additional weakening of financial and economic conditions in Portugal could reduce the government's ability to provide extraordinary support to REFER," S&P said. "Nonetheless, we continue to factor into our 'B-' long-term corporate credit rating on REFER a four-notch uplift from its stand-alone credit profile (SACP), which we assess at 'cc', in accordance with our criteria for rating government-related entities (GREs). This reflects our opinion that there is a 'very high' likelihood that the Republic of Portugal would provide timely and sufficient extraordinary support to REFER in the event of financial distress," S&P said. This view is based on S&P's assessment of REFER's: "Very important" role for the Portuguese government, given its natural monopoly position as the national rail infrastructure manager; and "Very strong" link with the Portuguese government, given REFER's 100% state ownership and its strong legal status as a public entity. "In line with our GRE criteria, a two-notch downgrade of Portugal could lead us to lower the long-term rating on REFER by one notch, assuming that our assessment of the company's SACP and the likelihood of extraordinary government support to REFER do not change. However, if we lower our long-term rating on Portugal by one notch, the long-term rating on REFER would not change, all else remaining equal," S&P said. CreditWatch "We aim to resolve the CreditWatch placement on REFER once we resolve that on the Republic of Portugal. We expect to conclude our review of European Economic and Monetary Union (eurozone) sovereign ratings as soon as possible following the European Summit on Dec. 8-9, 2011. Our policy is to resolve CreditWatch placements within 90 days, although we will attempt to resolve them sooner, if possible," S&P said. "As part of the CreditWatch resolution, we will consider the possible consequences of us lowering our sovereign rating on Portugal for the likelihood of extraordinary support to REFER from the Portuguese government," S&P related. "As part of the resolution of the CreditWatch placement on the nonguaranteed issue ratings, we will evaluate whether or not we think the individual debt instruments would rank pari passu in a default situation. If we believe that they would not rank pari passu, any subordinated debt would be at risk of a downgrade by up to two notches below our corporate credit rating on REFER," S&P said. Ratings List CreditWatch Action To From Rede Ferroviaria Nacional REFER, E.P.E. Corporate Credit Rating B-/Watch Neg/-- B-/Watch Dev/-- Senior Unsecured Debt B-/Watch Neg B-/Watch Dev Guaranteed Debt BBB-/Watch Neg BBB- ============= R O M A N I A ============= PRODLACTA BRASOV: Enters Into Insolvency Process ------------------------------------------------ According to Business Review, Mediafax reported that Prodlacta Brasov has entered insolvency procedures after a local Romanian court approved in November the request filed by the company's legal administrators, Info-Dip Insolvency SPRL and RVA Insolvency Specialists SPRL. The two companies have also requested that the company's shares be suspended from trading on the Bucharest Stock Exchange, the report says. Business Review says Prodlacta's revenues have been on downward trend in the past couple of years. The company, the report relates, has managed to halve its costs in the first three quarters on this year, but its sales have collapsed by 130% y-o-y, reaching RON 16.6 million while its losses went up by 24%, to RON3.4 million. Last year the company's business fell by 17%, to RON48.5 million, company representatives explaining at that time that Prodlacta had to reduce the prices of its products due to competition pressure. according to Business Review. Olympus has previously proposed social capital increases to Prodlacta's shareholders, but the proposition was rejected. Prodlacta Brasov is a Romania-based dairy producer. =========== R U S S I A =========== ALFA-BANK OJSC: Fitch Rates RUB5-Bil. Sr. Unsec. Bonds at 'BB+' --------------------------------------------------------------- Fitch Ratings has assigned OJSC Alfa-Bank's five-year RUB5 billion issue of senior unsecured bonds, due December 2, 2016 a final Long-term local currency rating of 'BB+' and National Long- term rating of 'AA(rus)'. The rate of the first three coupons has been set at 9.25%. The bonds have a put option on June 7, 2013. OJSC Alfa-Bank is the largest privately-owned bank in Russia by assets. It is part of the larger Alfa Bank Group, which is ultimately owned by six individuals, with the largest stakes held by Mikhail Fridman (36.47%) and German Khan (23.27%). EUROPEAN BEARING: S&P Assigns 'B+' Long-Term Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit and 'ruA+' Russia national scale ratings to Russian OJSC European Bearing Corporation (EBC). The outlook is stable. "Our ratings on EBC reflect our view of EBC's business risk profile as 'weak' and financial risk profile as 'aggressive', as our criteria define these terms," S&P said. EBC is Russia's largest producer of bearings for railroad rolling stock, aviation and defense, industrial, and automotive applications. Notwithstanding high market shares in key sectors, EBC faces increasing competition from both leading global and low-cost Chinese producers of bearings. The longer-term demand for bearings in Russia depends on the viability and international competitiveness of EBC's customers. EBC's current group and borrowing structure, while effectively protecting creditors, is complex and constrains the group's growth and strategic ambitions. ECB might refinance these facilities by issuing ruble bonds, terms of which are not yet known. "We see EBC's liquidity cushion as 'less than adequate', because of the scheduled amortization payments, or, if EBC refinances with bonds, because of near- or medium-term bullet maturities or puts," S&P said. "The stable outlook reflects our view that, as EBC continues to rebound from the sharp 2009 recessionary downturn, profitable growth will support debt repayments and limited capital expenditures within covenants under a loan from the European Bank for Reconstruction and Development (EBRD; AAA/Stable A-1+), or the likely more flexible covenants of a ruble bond. Adjusted debt-to-EBITDA coverage maintained at 2.5x or below and funds from operations to debt remaining at 20%-30% are consistent with the current ratings if EBC's markets and competitiveness continue to improve steadily," S&P said. If EBC's trading performance and working-capital management -- and hence, cash flow adequacy -- are robust, we could raise the ratings. If EBC refinances the EBRD facility, an upgrade would also be contingent on a good spread of debt maturities and a commitment to moderate financial policies broadly in line with the current loan agreement," S&P said. "Alternatively, if future financing does not include sufficient backup funding to cover the bullet maturities and potential puts of bonds, if creditors do not have a clear claim against the cash flows and assets of all important units of the group, or if EBC's market positions and competitiveness deteriorate, we could lower the ratings," S&P said. ROSSIYA OJSC: Fitch Affirms B- Insurer Financial Strength Rating ---------------------------------------------------------------- Fitch Ratings has affirmed OJSC Rossiya Insurance Company's Insurer Financial Strength (IFS) rating at 'B-' and National IFS ratings at 'BB-(rus)'. The Outlook is Negative. The Negative Outlook continues to reflect the limited evidence that Rossiya will achieve a sustainable improvement of its underwriting performance in the medium term. Although the insurer's portfolio demonstrated growth in 9M11 for the first time since 2009, Fitch notes that this growth was largely achieved through the compulsory motor third party liability (MTPL) insurance business, a segment with intense competitive pressure in the local market. In the absence of competitive advantages that differentiate Rossiya from other players, Fitch believes the company is unlikely to achieve a healthier underwriting performance through this strategy. The rating affirmation reflects the improvement of the combined ratio to 111% in 9M11 from 183% in 9M10 and 171% in 2010 - the 2010 figures were affected by adverse prior year reserve development. Fitch also notes that the rapid growth of premiums (55% on a gross of reinsurance basis and 71% on a net basis, in 9M11) slightly reduced the pressure of expense levels on Rossiya's combined ratio after a sharp contraction of premiums in 2009 and 2010. Nevertheless, the agency considers the 30% commission ratio and 29% expense ratio reported by Rossiya in 9M11 to still be high for an insurer with a high proportion of motor business in its portfolio. The agency believes that reducing commission levels will be a challenging task for Rossiya, as it is a medium-sized insurer with limited bargaining power and does not have access to alternative distribution capabilities. In Fitch's opinion, if Rossiya were to fail to maintain improvements in its underwriting performance, this could result in reduced willingness of its beneficiary individual shareholder to support the company with further capital injections. Fitch would therefore consider a deterioration in the combined ratio in 2012 compared to 2011 as a trigger for a downgrade. Conversely, Fitch would view positively an improved diversification of the portfolio towards more profitable lines of business and the return to positive levels of the underwriting result through more efficient expense management, although the agency does not believe this is a realistic target for the company in 2012. On the positive side, Fitch notes that Rossiya's beneficiary individual shareholder continued to support the company with capital injections amounting to RUB0.5bn in 9M11 (2009: RUB1.1bn, 2010: RUB4.4bn), and helped to offset the large underwriting losses and bad debt write-offs. The agency also notes that the recent improvement of underwriting performance reduced, to some extent, the company's need and dependence on further capital injections. While the track record of support has been favorable, Fitch continues to acknowledge risks related to the future ability and commitment of the shareholder to support Rossiya. These risks include a lack of transparency of Rossiya's beneficiary shareholder's ability to provide financial support and the fact that Rossiya is viewed as a non-core portfolio investment by the shareholder. Fitch believes that Rossiya has an investment policy involving significant risks and considers this to be a rating constraint. The agency notes that the investment policy creates additional risks for the capital when the underwriting performance is loss- making. Fitch sees no potential for positive rating actions in the absence of improvements in the investment risk management area. * TULA REGION: Fitch Affirms Long-Term Currency Ratings at 'BB-' ---------------------------------------------------------------- Fitch Ratings has affirmed the Russian region of Tula's Long-term foreign and local currency ratings at 'BB-'. The agency has also affirmed the region's National Long-term rating at 'A+(rus)' and Short-term foreign currency rating at 'B'. The Outlooks on the Long-term ratings are Stable. The affirmation reflects the region's growing economy, expected improvement of budget performance, moderate direct risk burden and low contingent liabilities. However, it also factors in the short-term profile of Tula's outstanding debt, which is causing refinancing pressure and still low, albeit recovering operating balance. Fitch notes that continuing weak budgetary performance caused by an inability to control growth of operating expenditure and a significant increase in short-term debt would lead to downward rating pressure. Conversely, maintenance of a sound budgetary performance with margins above 10% for two consecutive years coupled with the stabilization of the region's debt below 30% of current revenue would be positive for the ratings. Fitch expects Tula's operating performance to be restored close to the pre-crisis level after its notable deterioration in 2009 and 2010. Based on economic recovery trends and actual execution of the budget in the first nine months of 2011, the agency expects the operating margin to increase to 9.2% over the year. The increase in tax revenue proceeds was the major driver of operating revenue in 2011. Fitch expects the margin to stabilize at about 8%-9% in 2012 and 2013. High capital expenditure led to an increase in the deficit before debt variation to RUB3.9 billion in 2010, or 10.4% of total revenue (2009: 7.8% deficit). The region's capital expenditure almost doubled in 2010 and totalled RUB11 billion (2009: RUB5.6 billion). The increase was underpinned by a significant amount of capital revenue in the form of a capital grant from the federation. The administration expects a significant cut-back in capex in 2011, which will lead to a surplus before debt variation. Direct risk remains manageable in relative terms, accounting for 20% of Fitch-expected current revenue in 2011. However, the region is exposed to refinancing risk since the structure of its risk is dominated by short-term bank loans. Tula should redeem RUB5.34 billion or about 90% of total risk in 2012. Fitch notes that given the increasing tension in the financial markets, the cost of new loans will increase from the current low 6%-7% per annum. This would lead to an increase in interest expenditure and suppress the current margin. The region has a well-diversified local economy. It benefits from proximity to Moscow, the capital of the Russian Federation (RF). During the past five years, the region has had stable economic growth outpacing the RF average, but the size of its economy is still below the national average. Although its population accounts for about 1.1% of the national total, the region produces only 0.7% of total value added production. ========= S P A I N ========= AYT COLATERALES: Fitch Affirms 'BB' Ratings on Three Note Classes ----------------------------------------------------------------- Fitch Ratings has affirmed all tranches of the AyT Colaterales Global Hipotecario BBK series and AyT Hipotecario BBK series, a series of four Spanish prime RMBS transactions originated and serviced by Bilbao Bizkaia Kutxa ('A'/'F1'/RWN). The Outlooks on the tranches remain Stable. The affirmations reflect the stable asset performance and sufficient level of credit support available to the rated notes of all four transactions. The reserve funds in all four deals remain fully funded which combined with the sequential redemption, have contributed to an increase in the credit enhancement levels available to the notes, compared to those at close. Apart from AyT Hipotecario BBK I, all other transactions from the series are expected to continue amortizing in sequential order over the next 18 months. Fitch expects AyT Hipotecario BBK I to switch to a pro-rata pay-down and its reserve fund to amortize from April 2012 as all conditions are currently met. As a result, credit enhancement levels are expected to remain stable for all of AyT Hipotecario BBK I's tranches of notes. All four transactions feature provisioning mechanisms, whereby defaulted loans, defined as loans in arrears by more than 18 months, are fully provisioned using excess spread generated by the structures. The most recent investor reports show period gross excess spread ranging between 0.1% (AyT Colaterales BBK II) and 0.4% (AyT Hipotecario BBK I) of the outstanding collateral balance, which was sufficient to cover for period defaults. Fitch expects the excess spread to remain sufficient for provisioning purposes, and consequently reserve fund draws are unlikely in the next 12-18 months. For this reason, the agency has affirmed the ratings of the notes with Stable Outlooks. At present, loans in arrears by more than three months range between 0.5% and 1.1% of the outstanding pool balances of AyT Hipotecario BBK I and AyT Colaterales BBK I, respectively. Given the low interest rate environment and the seasoning of the underlying assets, especially in the two AyT Hipotecario transactions, the agency does not expect sudden asset deterioration of the pool in the upcoming payment dates. In its analysis of the underlying pools, the agency has identified a portion of loans that have either had their margin reduced and/or maturity extended, which may have contributed to lower arrears levels. The portion of loans that have seen changes to initial terms range between 6.2% (AyT Colaterales BBK I) and 19.6% (AyT Hipotecario BBK I) of the current portfolio. In its analysis of the deals, Fitch applied more conservative default assumptions for such loans, as in its view, alterations of terms and conditions could signal weaker borrower profiles. The pools comprise loans with high current loan-to-value ratios, ranging from 64.3% to 78.9% in AyT Colaterales BBK II and AyT Colaterales BBK I, respectively. Most of the loans in the pools are to borrowers in the Basque region, which is one of the more prosperous regions in Spain. However, the agency has identified broker-originated loans, which range between 3.0% (AyT Hipotecario BBK I) and 9.7% (AyT Colaterales BBK I) of the current pool balances and for which additional default assumptions have been applied, as outlined in Fitch's criteria addendum for Spain. The rating actions are as follows: AyT Colaterales Global Hipotecario, FTA Serie AyT Colaterales Global Hipotecario BBK I: -- Class A notes (ISIN ES0312273008) affirmed at 'A-sf'; Outlook Stable AyT Colaterales Global Hipotecario, FTA Serie AyT Colaterales Global Hipotecario BBK II: -- Class A notes (ISIN ES0312273362) affirmed at 'AA-sf'; Outlook Stable -- Class B notes (ISIN ES0312273370) affirmed at 'BBsf'; Outlook Stable AyT Hipotecario BBK I, FTA -- Class A notes (ISIN ES0312364005) affirmed at 'AAAsf'; Outlook Stable -- Class B notes (ISIN ES0312364013) affirmed at 'Asf'; Outlook Stable -- Class C notes (ISIN ES0312364021) affirmed at 'BBsf'; Outlook Stable AyT Hipotecario BBK II, FTA -- Class A notes (ISIN ES0312251004) affirmed at 'AAsf'; Outlook Stable -- Class B notes (ISIN ES0312251012) affirmed at 'Asf'; Outlook Stable -- Class C notes (ISIN ES0312251020) affirmed at 'BBsf'; Outlook Stable BBVA EMPRESAS: Fitch Affirms Rating on Class B Notes at 'BB+sf' --------------------------------------------------------------- Fitch Ratings has affirmed BBVA Empresas 5, FTA, as follows: -- EUR768m Class A notes (ISIN ES0313281000): affirmed at 'AAAsf'; Outlook Stable; -- EUR275m Class B notes (ISIN ES0313281018): affirmed at 'BB+sf'; Outlook Stable; The affirmations reflect sufficient levels of credit enhancement (CE) for the ratings driven by the deleveraging of the transaction. Currently, CE for the class A and B notes stands at 50% and 24%, respectively. The transaction has not yet experienced any defaults. Although 90+ day delinquencies remain at low levels, they have been increasing during the past five months and currently represent 2% of the outstanding balance as of the October 2011 investor report. Also, the transaction has considerable obligor and industry concentration. Currently, the top one, 10 and 20 obligors account for 2%, 17% and 29%, respectively, while exposure to real estate and construction sectors stands at 29%. In Fitch's view, the notes' current CE and the transaction's ability to withstand the agency's stress scenarios mitigate the concentration risk and increasing arrears. SANTANDER CONSUMER: Moody's Assigns 'Ca' Rating to Serie D Note --------------------------------------------------------------- Moody's Investors Service has assigned these definitive ratings to the debt issued by FONDO DE TITULIZACION DE ACTIVOS SANTANDER CONSUMER SPAIN AUTO 2011-1: -- EUR659.8M Serie A Note, Assigned Aaa (sf) -- EUR71.6M Serie B Note, Assigned Aa3 (sf) -- EUR63.6M Serie C Note, Assigned Baa2 (sf) -- EUR117.3M Serie D Note, Assigned Ca (sf) Ratings Rationale FTA SANTANDER CONSUMER SPAIN AUTO 2011-1 is a securitization of loans granted by Santander Consumer, E.F.C., S.A. to Spanish individuals. Santander Consumer is acting as Servicer of the loans while Santander de Titulizacion S.G.F.T., S.A. is the Management Company. As of November 2011, the provisional pool was composed of a portfolio of 85,456 unsecured auto loans granted to 84,975 obligors located in Spain, 97.4% of whom are private individuals. 98% of the assets were originated between 2010 and 2011. The weighted average seasoning of the portfolio is 1.0 year and its weighted average remaining term is 3.7 years. Around 78.5% of the portfolio are loans to purchase new vehicles, and the remaining 21.5% are loans to purchase used vehicles. Geographically, the pool is concentrated mostly in Andalucia (24.2%) and Madrid (13.5%). The provisional portfolio, as of its poolcut date, did not include any loans in arrears. The rating is primarily based on, (i) an evaluation of the underlying portfolio of loans; (ii) the historical performance information; (iii) the swap agreement, under which the swap counterparty will pay the weighted-average margin on the notes plus an excess spread of 2.5% on a notional equal to the portfolio net of loans in arrears for more than 90 days; (iv) the credit enhancement provided by the excess spread and the reserve fund (that however can also be used to cover portfolio defaults); (v) the liquidity support available in the transaction, by way of principal to pay interest, and the reserve fund; (vi) the provisions for the appointment of a back-up servicer; and (vii) the legal and structural integrity of the transaction. This deal benefits from several credit strengths, such as the granularity of the portfolio and its short portfolio weighted average life of around 2.5 years, as well as the simplicity of the structure, which does not include a revolving period and where notes are repaid sequentially. Moody's, however, notes that the transaction features a number of credit weaknesses, as there is some exposure to commingling risk (although partially mitigated by the undertaking of Santander Consumer Finance S.A. (SCF, A3/P-2) to fund a commingling reserve if it is downgraded below Baa3) as well as the presence of an unrated servicer, which is mitigated by the appointment of SCF as the transaction back up servicer at closing. Moody's also took into account the worse than expected performance of some of the previous Santander transactions in the same sector. These characteristics, amongst others, were considered in Moody's analysis and ratings. In its quantitative assessment, Moody's assumed a mean default rate of 10%, with a coefficient of variation of 40% and a recovery rate of 30%. Moody's also tested other set of assumptions under its Parameter Sensitivities analysis. The results show that the model output for class A notes would be 2 notches lower if the mean default rate assumption was to increase to 13%, all other parameters being kept unchanged. Similarly, the model output would be 1 notch lower if the recovery rate assumption was to decrease to 20%, all other parameters being kept unchanged. For more details, please refer to the full Parameter Sensitivity analysis included in the New Issue Report of this transaction. The main source of uncertainty in the analysis relates to the variability of the assets historical performance The V Score for this transaction is Low/Medium, which is in line with the score assigned for the German/French Auto sector. V- Scores are a relative assessment of the quality of available credit information and of the degree of dependence on various assumptions used in determining the rating. For more information, the V-Score has been assigned accordingly to the report "V Scores and Parameter Sensitivities in the Non-U.S. Vehicle ABS Sector" published in January 2009. The principal methodology used in this rating was Moody's Approach to Rating European Auto ABS published in November 2002. Other Factors used in this rating are described in The Lognormal Method Applied to ABS Analysis published in July 2000. In rating this transaction, Moody's used ABSROM to model the cash flows and determine the loss for each tranche. The cash flow model evaluates all default scenarios that are then weighted considering the probabilities of the lognormal distribution assumed for the portfolio default rate. In each default scenario, the corresponding loss for each class of notes is calculated given the incoming cash flows from the assets and the outgoing payments to third parties and noteholders. Therefore, the expected loss or EL for each tranche is the sum product of (i) the probability of occurrence of each default scenario; and (ii) the loss derived from the cash flow model in each default scenario for each tranche. As such, Moody's analysis encompasses the assessment of stressed scenarios. As noted in Moody's comment 'Rising Severity of Euro Area Sovereign Crisis Threatens Credit Standing of All EU Sovereigns' (November 28, 2011), the risk of sovereign defaults or the exit of countries from the Euro area is rising. As a result, Moody's could lower the maximum achievable rating for structured finance transactions in some countries, which could result in rating downgrades. =========== S W E D E N =========== SAAB AUTOMOBILE: Gets Youngman Payment; Dec. 19 Court Hearing Set ----------------------------------------------------------------- Ola Kinnander at Bloomberg News, citing Dagens Industri, reports that Zhejiang Youngman Lotus Automobile plans to invest between SEK10 billion (US$1.43 billion) and SEK12 billion in Saab Automobile. Meanwhile, Reuters' Mia Shanley at Reuters reports that Saab has received a first payment from Youngman as it struggles to stay in business. Youngman "paid EUR3.4 million [Tues]day," Victor Muller, chief executive of Swedish Automobile, the Dutch firm which owns Saab, told Reuters in a telephone text message. "We are working on the documentation for further funding adequate to pay salaries and continue reorganization," Reuters quotes Mr. Muller as saying. Saab spokesman Eric Geers could not say whether more money was on the way but said discussions with Youngman had continued and that progress was being made, Reuters notes. In a separate report, Bloomberg's Ms. Kinnander relates that Sweden's Vaenersborg District Court will hold a hearing Dec. 19 on whether Saab's protection against creditors should continue. According to Bloomberg, Mr. Geers said on Tuesday that Saab's earlier Dec. 15 deadline for filing its arguments with the court has been lifted. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. =========================== U N I T E D K I N G D O M =========================== BLACKS LEISURE: Rival Retailers Mull Takeover Bid ------------------------------------------------- The Scotsman reports that rival retailers Mountain Warehouse and Go Outdoors are thought to be mulling bids for struggling Blacks Leisure, which put itself up for sale last week. Loss-making Blacks has invited offers for all or part of its business after failing to secure shareholder funding for a turnaround plan, the Scotsman relates. The chain has debts of GBP36 million and analysts believe if it does not find a buyer soon it will be put into administration, the Scotsman notes. As reported by the Troubled Company Reporter-Europe on Dec. 8, 2011, BBC News related that Blacks Leisure issued an appeal for a white knight investor to rescue it by buying the firm or one of its brands. The company said it was making the appeal after meeting major shareholders and some potential investors as part of a capital-raising exercise, according to BBC. Blacks, as cited by BBC, said it had the support of Royal Bank of Scotland, its main lender. The firm appointed accountants KPMG to find potential buyers, BBC disclosed. Blacks Leisure is an outdoor clothing and equipment retailer. The company operates about 300 shops under the Blacks and Millets brands. CONSOLIDATED MINERALS: S&P Cuts Corporate Credit Rating to 'B+' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Jersey-incorporated, leading manganese ore producer Consolidated Minerals Ltd. (Jersey) (ConsMin) to 'B+' from 'BB-'. The outlook is negative. "At the same time, we lowered the issue rating on ConsMin's outstanding US$405 million senior secured notes to 'B+' from 'BB- '. The recovery rating on the notes is unchanged at '4', indicating our expectation of average (30%-50%) recovery prospects in the event of a payment default," S&P said. "The downgrade follows our reassessment of ConsMin's prospective financial performance in light of the expansion in capacity of existing seaborne producers of manganese ore, and its effect on the benchmark price, given the relatively high cost position of Consmin's Australian production," S&P said. In early December, BHP Billiton Ltd. (A+/Stable/A-1) announced a 75 cent reduction in the benchmark price for 45.5% manganese lump (including cost, insurance, and freight [CIF]) for China delivery) to US$4.75 per dry metric ton unit (dmtu) for January delivery. This compares with US$5.50 per dmtu in the past seven months. "We understand that this lower price is below Consmin's average C1 cash cost for manganese (that is, including mining, processing, site administration, and refining) in Australia, and will likely result in ConsMin becoming more dependent on its Ghanaian assets. In our opinion, the revised manganese price will have a significant negative impact on Consmin's earnings and cash flow, with adjusted EBITDA falling by our estimation to about $60 million in 2012 and about US$100 million in 2013," S&P said. "In our view, ConsMin will face a difficult operating environment in 2012. While we anticipate that the demand for seaborne manganese will remain strong, the increasing level of supply from major international producers is a clear risk, reflected in the latest fall in the benchmark price for manganese. The group's 'adequate' liquidity position provides important structural support to the rating," S&P said. "The outlook also takes into account the uncertainty over how long this weaker price environment will persist and the risk (although not expected under our base-case scenario) that it could go lower if there were further dislocation in the global economy," S&P said. "We could lower the rating in the next 6-12 months if we saw prices fall further to less than US$4.50 per dmtu. Equally, the rating could come under pressure if ConsMin's liquidity position weakened materially -- for instance, if negative FOCF were to rise to more than $100 million over a 12-month period," S&P related. "On other hand, we could revise the outlook to stable if Consmin's unit cash costs improved in Australia, possibly supported by a weakening Australian dollar. Similarly, we could revise the outlook to stable if the manganese price environment were to improve on a sustained basis, such that total debt to EBITDA fell to less than 3x from an estimated 3.6x at the end of 2011," S&P said. DWS INVESTMENT: To Liquidate EUR257 Million Real Estate Fund ------------------------------------------------------------ Citywire.co.uk reports that Deutsche Bank's DWS Investment is to liquidate its EUR257 million real estate fund of funds after originally closing it for redemptions in May this year. The 'situation in the market for the funds has not calmed', the firm said in an emailed statement on Monday after announcing it was liquidating its db Immoflex property fund of funds, according to Citywire.co.uk. According to the report, five of the real estate funds the db Immoflex fund is invested are already in a liquidation process, including the EUR2.5 billion AXA Immoselect fund which was closed in October and Aberdeen's DEGI property funds, and DWS said that share units in all nine funds are also to be withdrawn. Citywire.co.uk relates that liquidity in the fund, which was run by Sascha Kayser, was at 10.3% as of November 30, a percentage the firm said is too low to keep the fund open and the liquidation process of is planned to be completed by May 2014. This is the latest fund closure to have hit the real estate sector in a year which has seen over half a dozen property fund liquidations, the report notes. HALLIWELLS: BDO Applies to be Named Liquidator ---------------------------------------------- Simon Petersen at Legalweek reports that BDO has applied to be appointed as liquidator of defunct law firm Halliwells, with the organisation, currently Halliwells' administrator, taking the first steps towards liquidating the failed firm's limited liability partnership (LLP). BDO expects a decision on its application in the New Year but CMS Cameron McKenna issued a letter on behalf of the company last month stating BDO's intention to terminate its appointment as administrator and to instead become the failed firm's liquidator, according to Legalweek. Legalweek relates that the letter, dated 15 November and sent to the four remaining members of the defunct firm's limited liability partnership (LLP) still registered at Companies House, does not give a date for when the liquidation will take place. BDO's term overseeing the administration of Halliwells is due to end on Jan. 19, 2012, after the professional services firm was granted a six month extension to its term in July 2011, the report notes. The petition will be heard on Jan. 12, 2012. As reported in the Troubled Company Reporter-Europe on Feb. 18, 2011, Legalweek said that the latest report from administrators BDO revealed that Halliwells owed unsecured creditors more than GBP190 million. Legalweek related that to date, BDO has received claims worth GBP191.5 million from unsecured creditors. Landlord and lease creditors account for GBP182.2 million of claims received to date, with Her Majesty's Revenue & Customs the next largest creditor with some GBP4.3 million in taxes and GBP1.1 million in VAT, according to Legalweek disclosed. Legalweek noted that the debt figure is significantly higher than the GBP14.1 million originally thought to be owed to unsecured creditors. At that point, HMRC was identified as the largest of the non-preferential creditors, Legalweek said. Halliwells is a law firm based in Manchester. As reported by the Troubled Company Reporter-Europe on July 1, 2010, The Lawyer said Halliwells filed a notice of its intention to appoint an administrator, claiming that high property costs exacerbated by the current economic climate adversely impacted its finances. Halliwells appointed BDO partners Dermot Power -- dermot.power@bdo.co.uk -- and Shay Bannon -- shay.bannon@bdo.co.uk -- as joint administrators. LA SENZA: Calls In KPMG to Advise on Restructuring -------------------------------------------------- City A.M. reports that La Senza has called in restructurers from KPMG as it struggles to manage costs during the high street slump. According to City A.M., the business, which is owned by private equity house Lion Capital, is considering entering administration but other options, such as a company voluntary arrangement or winning new investment, remain on the table. A break-up is possible but 3i, the private equity owner of upmarket brand Agent Provocateur, is unlikely to be interested in a deal, City A.M. says. La Senza is a British lingerie firm. The company turns over GBP140 million and has more than 2,600 staff. THOMAS COOK: To Close 200 Stores Under Turnaround Plan ------------------------------------------------------- BBC News reports that Thomas Cook has said it will close 200 stores over the next two years as part of its turnaround plan for its UK business. News of the store closures came as it reported a GBP398 million (US$616 million) annual loss for the year to the end of September, BBC relates. The company has been looking to cut its debts to restore the confidence of investors, BBC notes. As reported by the Troubled Company Reporter-Europe on Nov. 29, 2011, BBC News related that Thomas Cook reached agreement with its bankers to provide it with new access to funding. Shares in the company fell 75% on Nov. 22 after it said it was in talks about increasing borrowings, BBC recounted. Its bankers, including Barclays, HSBC, RBS and UniCredit, agreed to provide a new GBP200 million facility until April 30, 2013, BBC disclosed. At the end of September the firm's net debt was just under GBP900 million, BBC said. The new loan will take the figure to over GBP1 billion, BBC stated. The company stressed that it is not currently in breach of the terms of any of its loans, and said it wanted the new loans to "improve its resilience if trading conditions remain difficult," according to BBC. Thomas Cook Group plc is a United Kingdom-based company. The Company, together with its subsidiaries, is engaged in the provision of leisure travel services. Its main brands include Airtours, Aspro, Club 18-30, Cresta, Manos, Neilson, Sunset, Sunworld Holidays, Swiss Travel Service, Thomas Cook, Thomas Cook Style Collection, Thomas Cook Signature and Thomas Cook Tours. It has six geographic operating divisions: United Kingdom, Central Europe, West and East Europe, Northern Europe, North America and Airlines Germany. THOMAS COOK: Sells Spanish Hotel Chain to Iberostar --------------------------------------------------- BBC News reports that Thomas Cook has sold Spanish hotel chain Hotels Y Clubs De Vacaciones (ICV) to Grupo Iberostar for EUR72.2 million (US$95.4 million; GBP61 million). It comes as the company looks to cut its debts, BBC notes. According to BBC, as HCV is being sold with net debt of EUR22.4 million, it will cut Cook's net debt by EUR94.6 million. Thomas Cook is looking to restore the confidence of tourists and investors, BBC says. Thomas Cook had blamed unrest in Egypt and Tunisia and floods in Thailand, all key destinations, for hitting sales, BBC relates. As reported by the Troubled Company Reporter-Europe on Nov. 29, 2011, BBC News related that Thomas Cook reached agreement with its bankers to provide it with new access to funding. Shares in the company fell 75% on Nov. 22 after it said it was in talks about increasing borrowings, BBC recounted. Its bankers, including Barclays, HSBC, RBS and UniCredit, agreed to provide a new GBP200 million facility until April 30, 2013, BBC disclosed. At the end of September the firm's net debt was just under GBP900 million, BBC said. The new loan will take the figure to over GBP1 billion, BBC stated. The company stressed that it is not currently in breach of the terms of any of its loans, and said it wanted the new loans to "improve its resilience if trading conditions remain difficult," according to BBC. Thomas Cook Group plc is a United Kingdom-based company. The Company, together with its subsidiaries, is engaged in the provision of leisure travel services. Its main brands include Airtours, Aspro, Club 18-30, Cresta, Manos, Neilson, Sunset, Sunworld Holidays, Swiss Travel Service, Thomas Cook, Thomas Cook Style Collection, Thomas Cook Signature and Thomas Cook Tours. It has six geographic operating divisions: United Kingdom, Central Europe, West and East Europe, Northern Europe, North America and Airlines Germany. THOMAS COOK: Union Lifts Strike Threat at Unit ---------------------------------------------- Dow Jones' DBR Small Cap reports that Unite, the union representing cabin crew at Thomas Cook Group's U.K.-based airline, said that it struck an agreement with the company over pay and job cuts late last month to avoid putting the troubled travel group's future in jeopardy. Thomas Cook Group plc is a United Kingdom-based company. The Company, together with its subsidiaries, is engaged in the provision of leisure travel services. Its main brands include Airtours, Aspro, Club 18-30, Cresta, Manos, Neilson, Sunset, Sunworld Holidays, Swiss Travel Service, Thomas Cook, Thomas Cook Style Collection, Thomas Cook Signature and Thomas Cook Tours. It has six geographic operating divisions: United Kingdom, Central Europe, West and East Europe, Northern Europe, North America and Airlines Germany. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 * * *