/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/120112.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, January 12, 2012, Vol. 13, No. 9 Headlines C Y P R U S METELEM HOLDING: S&P Assigns 'B+' Corporate Credit Ratings C Z E C H R E P U B L I C INVESTICNI A POSTOVNI: Court Tosses CSOB Claim on Brewery Shares D E N M A R K VESTJYSK BANK: Denmark's Biggest Banks Won't Contribute to Rescue G E R M A N Y GELDILUX-TS-2007: S&P Affirms 'B-' Rating on Class E Notes G R E E C E * GREECE: Creditors Agree on Coupon & Bond Maturity for Debt Swap I T A L Y CARGOITALIA SPA: Placed in Voluntary Liquidation L U X E M B O U R G TRUCKLEASE SA: Fitch Affirms Rating on Class D Notes at 'BB+sf' R O M A N I A TNUVA ROMANIA: Enters Insolvency; Posts US$200 Million Losses S P A I N CAJA DE AHORROS INMACULADA: Fitch Cuts Sub. Debt Rating to 'BB+' U N I T E D K I N G D O M BRITISH MIDLAND: Auditors Raise Going Concern Doubt CHURCH'S CHINA: Closes Shop After More Than 150 Years DARLINGTON FC: Stadium Owners Offer GBP50,000 to Help Club EMI GROUP: Guy Hands' Bid for PwC to Disclose Valuation Tossed * UK: Companies Face Pressure to Fill In Pension Deficits * Bingham's London Office Promotes Four Lawyers to Partnership X X X X X X X X * Euler Hermes Expects Number of Failed Companies to Rise in 2012 * Upcoming Meetings, Conferences and Seminars ********* =========== C Y P R U S =========== METELEM HOLDING: S&P Assigns 'B+' Corporate Credit Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit ratings to Metelem Holding Company Ltd. and its indirect subsidiary EILEME 2 AB. The outlook is stable. "At the same time, we assigned our 'B-' issue rating to Metelem's planned EUR900 million equivalent bond issue," S&P said. "The ratings on Metelem primarily reflect our view of the group's high leverage and aggressive financial policy following its recent acquisition of Polish wireless operator Polkomtel S.A. (B+/Stable/B). We also see a long-term risk of mergers among related parties under the new ownership. In addition, we forecast relatively limited headroom under the group's covenants in our base-case credit scenario," S&P said. "These weaknesses are partly offset by our view of Polkomtel's solid position as one of the three leading operators in the Polish wireless market, with a relatively low churn rate. We consider the Polish wireless market to be highly competitive, which places material pricing pressure on the group's retail revenues. Increasing competition, particularly due to the smaller fourth market player P4, has led to an ongoing decline in voice revenues at Polkomtel in recent years, along with a decline in its market share, notably in the pre-paid sector," S&P said. "However, Polkomtel has managed to mitigate some of the impact of these declines on its profitability by implementing cost cutting in its operating structure. In addition, Polkomtel's profitability is high compared with its local and global peers, and we see potential for additional cost cutting. We also see material headroom for growth from mobile broadband given Poland's relatively low smartphone penetration and poor fixed broadband coverage. These strengths translate into our assessment of Metelem's business risk profile as 'satisfactory,'" S&P said. Metelem is a holding company and the ultimate parent of Polkomtel after the recent acquisition of 100% of Polkomtel's shares by Metelem's indirect subsidiary Spartan Capital Holdings Sp.z.o.o. Metelem is controlled by Mr. Solorz-Zak, who is also the majority owner of Cyfrowy Polsat S.A. (BB-/Stable/--). "In our view, Polkomtel's operating performance should remain relatively stable, with potential growth prospects from 2013 driven by increasing data revenues and the implementation of cost-cutting initiatives," S&P said. "We take into account our assumption that, under our base-case scenario, there will be no material deleveraging in 2012 owing to high long-term evolution carriage costs, additional pressures on voice revenues, and declining interconnection revenues. Even so, we anticipate that adjusted debt to EBITDA should not exceed 5.5x in 2012," S&P said. "Downward rating pressure could arise if operating pressures over 2012 are higher than we anticipate, leading to a significant decline in covenant headroom or an increase in adjusted leverage to more than 6x. This could materialize, for example, if voice revenues (excluding interconnection and roaming fees) were to experience a low double-digit decline, although we consider this to be unlikely," S&P said. "Rating upside is limited over the next 12 months, in our opinion, given our forecast for relatively slow deleveraging. Rating upside remains possible, however, if the group deleverages more rapidly than we currently anticipate on the back of improving and sustainable profitability, with adjusted leverage of less than 5x," S&P said. =========================== C Z E C H R E P U B L I C =========================== INVESTICNI A POSTOVNI: Court Tosses CSOB Claim on Brewery Shares ---------------------------------------------------------------- CTK reports that the Supreme Court has rejected the appellate review of the CSOB Czech bank claiming some CZK24 billion from eight companies around the Nomura Japanese bank for the alleged illegal and disadvantageous transfer of breweries' shares. CSOB demanded compensation for the transfer of the Plzensky Prazdroj and Radegast Czech breweries' shares from the Investicni a Postovni banka (IPB) bank, CTK says. The Supreme Court (NS) turned down the appellate review last December concluding that it had found no reasons for intervention in the "Czech beer" case, CTK recounts. The complicated court dispute is one in a series of disputes stirred up in 2000 after forced administration was imposed on IPB that was threatened with bankruptcy and after the sale of its property to CSOB, CTK notes. In this case, CSOB failed with its compensation claim filed with the Prague City and High courts, CTK discloses. It demanded money IPB allegedly lost in the disadvantageous transaction with the breweries' shares before the bank went bankrupt, CTK relates. The Czech National Bank (CNB) imposed forced administration on IPB on June 16, 2000 and CSOB took over the IPB assets and claims on June 19, 2000. The Czech state vouched for the bank's sold assets, CTK notes. A major part of the bank's irrecoverable claims was then transferred to state institutions, in particular the Czech Bail-out Agency, the report notes. A number of court disputes and arbitration proceedings then followed. The Czech state lost a significant arbitration with Nomura in 2006, CTK says. However, in November 2006, the Czech Republic and Nomura signed a settlement agreement and the Czech Republic paid CZK3.6 billion in damages to Nomura, CTK discloses. The state sent the amount to the company in July 2008, the report cites. According to available information, the Czech Republic also pledged to cover any damage and loss Nomura suffered that would be claimed in other disputes ensuing from contracts, CTK notes. The pledge allegedly also applies to the CSOB-Nomura dispute in the "Czech beer" case, CTK states. Investicni a Postovni banka was a Czech bank. ============= D E N M A R K ============= VESTJYSK BANK: Denmark's Biggest Banks Won't Contribute to Rescue ----------------------------------------------------------------- Adam Ewing and Frances Schwartzkopff at Bloomberg News report that local media said Denmark's biggest banks won't contribute to a rescue for Vestjysk Bank A/S. According to Bloomberg, German newspaper Borsen on Tuesday said a conference call on Monday that included executives from Danske Bank A/S, Nordea Bank AB's Danish unit, Jyske Bank A/S and Sydbank A/S, as well as representatives from the Danish Bankers Association, ended with an agreement not to rescue Vestjysk. The newspaper reported that the banks concluded Vestjysk must either survive on its own, be taken over by the state bank resolution agency, or become at least partially government-owned, Bloomberg notes. Bloomberg relates that Frank Kristensen, the bank's chief executive officer, said Vestjysk is "not in a deep crisis" and will meet its funding requirements by tapping a three-year lending facility that the Danish central bank made available on Dec. 8. "We are not even close to going bankrupt or anything like that," Bloomberg quotes Mr. Kristensen as saying in a phone interview on Tuesday. Mr. Kristensen said that Vestjysk is reviewing various strategic options and had asked Bankers Association members to comment on one at Monday's call, Bloomberg recounts. He said it wasn't a takeover by another bank and that Vestjysk doesn't have concrete plans to exercise its option to convert hybrid capital to shares, which would give the government an ownership stake, Bloomberg notes. Bloomberg relates that broadcaster TV2 on Tuesday said Vestjysk was seeking a guarantee from the banking industry for a DKK500 million share capital issuance. In a separate statement to the Copenhagen stock exchange, the bank said it's continuously monitoring its funding and capital structures and its strategies, and will make changes public if and when any are made, according to Bloomberg. Denmark's government has lent DKK1.4 billion in hybrid core capital to Vestjysk, Bloomberg says, citing the Web site of Denmark's bank wind-down agency the Financial Stability Company. Lars Holm, a Copenhagen-based analyst at Danske Markets, said that the government can opt to convert its hybrid capital in Vestjysk to equity to avert another failure, bringing its stake in the bank to more than 50%, Bloomberg discloses. As reported by the Troubled Company Reporter-Europe on Jan. 4, 2012, Bloomberg News related Vestjysk, which was ordered last month to more than double its loan impairments, isn't discussing a government takeover. Vestjysk said Dec. 20 that the Financial Services Authority demanded the bank to increase its writedowns for 2011 by DKK550 million to DKK950 million on loans related to agriculture, Bloomberg disclosed. The bank, as cited by Bloomberg, said its solvency ratio was 12.7% after the extra writedowns compared with a 10.6% solvency requirement set by the regulator. Vestjysk Bank A/S is a Lemvig, Denmark-based lender. ============= G E R M A N Y ============= GELDILUX-TS-2007: S&P Affirms 'B-' Rating on Class E Notes ---------------------------------------------------------- Standard & Poor's Ratings Services placed its credit rating on Geldilux-TS-2007 S.A.'s class A notes on CreditWatch negative. "At the same time, we affirmed our ratings on all other rated classes of notes," S&P said. "The rating action on the class A notes follows the CreditWatch negative placement of our ratings on Unicredit Bank in its capacity as originator. When we last took rating action on Geldilux-TS-2007 in December 2009, we incorporated a cap on the ratings on the class A to E notes equal to the long-term issuer credit rating (ICR) on Unicredit Bank. This reflects our view of the refinance risk prevalent in the portfolio. If UniCredit Bank were to default, borrowers would need to find third-party refinancing for maturing loans. During the time that Unicredit Bank is performing, maturing loans are typically being rolled or refinanced by drawdowns on the borrowers' working capital or term facility," S&P said. Geldilux-TS-2007 was originated by Unicredit Bank AG (A/Watch Neg/A-1). The securitized assets are short-term loans, advanced under the bank's euro-loan program, to preferred clients from various business segments. The majority of borrowers are small and midsize enterprises (SMEs). During the replenishment period ending on March 8, 2012, loans from the bank's euro-loan portfolio are added to the Geldilux portfolio on a random selection mechanism, subject to the replenishment conditions set out in the transaction documents. The loans have a maximum maturity of 368 days and feature a bullet repayment of both interest and principal. These loans are within the framework of a client's working capital facility or term facility offered by Unicredit Bank. "The affirmation of our ratings on the class B to E notes reflects the largely unchanged credit quality of the portfolio, and the short risk horizon of the underlying loans. Since our last review in December 2009, cumulative defaults have increased to 0.4% of the portfolio notional from almost zero. At the same time, cumulative recoveries have also increased, such that current outstanding defaults are 0.18% of the portfolio notional. Taking into consideration the current outstanding defaults, under our recovery assumptions, the credit enhancement available to the class A to E notes has reduced only marginally," S&P said. "The portfolio credit quality, when measured by the weighted- average portfolio rating, remains largely unchanged when compared with our last review. The reported portfolio weighted-average life is about 35 days. Following the end of the revolving period in March 2012, the issuer expects the portfolio to amortize within one month. We have affirmed our ratings on the class B to E notes, as in our view the credit enhancement available to these classes is commensurate with their existing rating levels," S&P said. "The sole purpose of the EUR4.5 million of liquidity notes is to cover interest shortfalls arising from potential timing mismatches, between receipt of the interest margin payments from performing loans, and the interest payment dates on the notes. The issuer holds the entire proceeds of the liquidity notes in an interest reserve account with Citibank N.A. (A/Negative/A-1), and according to our 2010 counterparty criteria this classifies as direct substantial support in relation to these notes. Unicredit Bank has confirmed to us that to date, the issuer has made no drawings from this account. The liquidity notes are repaid via withdrawing the corresponding amount from the issuer's interest reserve account. We have affirmed our rating on these notes at its current level, to reflect the ICR on Citibank," S&P said. Potential Effects of Proposed Criteria Changes "We have taken the rating actions based on our criteria for rating European SME securitizations. However, these criteria are under review," S&P said. "As highlighted in the Aug. 6 Advance Notice of Proposed Criteria Change, we expect to publish a request for comment (RFC) outlining our proposed criteria changes for rating European SME securitizations. Subsequently, we will consider market feedback before publishing our updated criteria. Our review may result in changes to the methodology and assumptions we use when rating European SME securitizations, and consequently, it may affect both new and outstanding ratings on European SME securitizations," S&P said. "Until such time that we adopt new criteria for rating European SME securitizations, we will continue to rate and surveil these transactions using our existing criteria," S&P said. Standard & Poor's 17g-7 Disclosure Report SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com Ratings List Class Rating To From Geldilux-TS-2007 S.A. EUR2.104 Billion Credit-Linked Floating-Rate Notes Rating Placed On CreditWatch Negative A A (sf)/Watch Neg A (sf) Ratings Affirmed B BBB (sf) C BB (sf) D B (sf) E B- (sf) Liquidity notes A (sf) =========== G R E E C E =========== * GREECE: Creditors Agree on Coupon & Bond Maturity for Debt Swap ----------------------------------------------------------------- Marcus Bensasson at Bloomberg News reports that Euro2day said Greece, backed by the European Union and International Monetary Fund, and a negotiating committee for the country's lenders have agreed on the coupon and maturity of new bonds to be issued as part of a debt swap. According to Bloomberg, the Athens-based news Web site said that lenders who participate in the debt swap will have a choice of receiving 20-year bonds with a 4% interest rate or 30-year bonds with a 5% interest rate. As reported by the Troubled Company Reporter-Europe on Jan. 11, 2012, Bloomberg News related that Andreas Koutras of research firm ITC Markets said imposing losses on Greek bondholders holding out against a debt restructuring would allow buyers of credit-default swap protection to demand payment. Dow Jones Newswires on Monday reported that the Greek government plans to insert so-called collective action clauses into its bond documentation, allowing bondholders to force holdouts to accept the same terms as the majority, Bloomberg disclosed. The use of so-called collective action clauses would trigger what's known as a restructuring credit event, Bloomberg said. The International Swaps & Derivatives Association said these can be caused by a reduction in principal or interest, postponement or deferral of payments or a change in the ranking or currency of obligations, Bloomberg noted. ========= I T A L Y ========= CARGOITALIA SPA: Placed in Voluntary Liquidation ------------------------------------------------ Mike Weir at IFW reports that Italian air freight carrier Cargoitalia S.p.A. has been placed in voluntary liquidation in a development likely to fuel worries over the health of cargo airlines which operate older aircraft. IFW reported Monday that Air India would sell six, 30-year-old freight-adapted Boeing 737s while last week we covered the suspension of China's first air freight joint-venture, Jade Cargo, said to be struggling with falling demand. "It goes without saying that these are hard times for all-cargo carriers, and it's likely there will be further company failures in the sector, unfortunately, especially those operating older freighters," an industry source told IFW. "A meeting of shareholders of Cargoitalia has voted to place the company in voluntary liquidation. The board of directors has suspended the airline's operations in preparation," IFW cited Milan Malpensa carrier in a brief statement on its website. "No further statement will be issued until a liquidator has been appointed and the finances of the company have been reviewed." In May last year, despite suspending or cancelling planned services, due to lack of demand on key routes and escalating fuel prices, the all-cargo carrier told IFW that it was hoping to announce the purchase of up to five A330s in 2011 a bid to become more fuel efficient and achieve greater economies of scale. Part of Cargoitalia's difficulties are said to be stem from the fact that it had to cope with keen competition on its doorstep, Cargolux having obtained a license to operate out of Italy with a dedicated subsidiary, IFW relays. Cargoitalia, founded in 2004, had been operating a fleet of three MD-11Fs from Milan to destinations such as Dubai, Hong Kong and New York, the transatlantic service returning via Chicago. The company was re-launched at the height of the air cargo recession in 2009 by its new owner, Alis Aerolinee Italiane, which bolstered the operation with the acquisition of the cargo division of Alitalia. =================== L U X E M B O U R G =================== TRUCKLEASE SA: Fitch Affirms Rating on Class D Notes at 'BB+sf' --------------------------------------------------------------- Fitch Ratings has upgraded TruckLease S.A. Compartment No. 1's class B and C notes, affirmed the class A and D notes, and revised classes B, C, and D's Outlook to Positive as follows: -- Class A notes affirmed at 'AAAsf'; Outlook Stable -- Class B notes upgraded to 'AAsf' from 'AA-sf'; Outlook revised to Positive from Stable, -- Class C notes upgraded to 'Asf' from 'BBB+sf'; Outlook revised to Positive from Stable, -- Class D notes affirmed at 'BB+sf'; Outlook revised to Positive from Stable, -- Subordinated Note; unrated The rating actions reflect the transaction's robust performance as demonstrated by the low delinquency rates and the cumulative default ratios to date remaining below Fitch's base case assumptions set at closing. TruckLease S.A. is a Luxembourg securitization vehicle. Compartment No. 1 is the issuer's first -- and so far the only -- compartment, with possible further compartments to follow. The transaction is the securitization of a portfolio of finance lease receivables originated in Germany by NL Mobil Lease GmbH (NL Mobil) and its wholly owned subsidiary UTA-Leasing GmbH. NL Mobil is ultimately wholly owned by Albis Leasing AG. The vast majority of the leases (approximately 85% by outstanding lease balance as of December 2011) are for the financing of trucks and trailers, around 7% relate to cars with the remainder backed by leases on buses or equipment related to the haulage industry (such as fork lifts). All lessees are SMEs, predominantly self-employed individuals (mico-SMEs). The transaction started amortizing in fully sequential order after having completed a three-month revolving period in May 2011. By the December 2011 payment date, the collateral balance has amortized by around 35%, reflecting the leases' relatively short term. Germany's economy performed strongly since transaction closing, with a GDP growth of around 3.1% in 2011 and unemployment rates decreasing to the lowest levels in 20 years. Driven by the favorable economic environment, default rates have remained below historic levels and the cumulative default rate reported for TruckLease No. 1 stood at just 1.2% by December 2011 (compared to the agency's expectation of 3.6% for that point in time). The fast amortization together with the solid performance has lead to strongly increased credit enhancement levels. Fitch believes that TruckLease No. 1 could therefore withstand increased stress levels and thus upgraded the class B and C notes and assigned Positive Outlooks to all tranches (except for the class A which is already rated 'AAAsf'). ============= R O M A N I A ============= TNUVA ROMANIA: Enters Insolvency; Posts US$200 Million Losses ------------------------------------------------------------- Simona Bazavant at Business Review, citing Mediafax, reports that Tnuva Romania has filed for insolvency. Last month, Israeli media was announcing that Tnuva had decided to close its local dairy business after failed attempts to sell the company, Business Review recounts. The same source estimates that Tnuva has reported heavy losses worth US$200 million since 2007 in Romania, Business Review notes. Last March, Tnuva closed its cow farm in Adunatii-Copaceni (near Bucharest) which covered 25% of the milk production of its Popesti Leordeni factory, also due to financial considerations, Business Review relates. The company announced at that time that despite posting loss for several years, it didn't plan to leave the local market, Business Review discloses. Tnuva Romania is a dairy producer. ========= S P A I N ========= CAJA DE AHORROS INMACULADA: Fitch Cuts Sub. Debt Rating to 'BB+' ---------------------------------------------------------------- Fitch Ratings has downgraded the Long-term Issuer Default Ratings (IDR) of Banco Mare Nostrum S.A. (BMN) and Banca Civica S.A. to 'BBB' from 'BBB+', and Banco Grupo CajaTres S.A. (BCaja3) to 'BBB-' from 'BBB'. At the same time, the agency has affirmed Liberbank S.A.'s Long-term IDR at 'BBB+'. It has also assigned Kutxabank S.A. a Long-term IDR of 'A-'. The Outlook for all the banks' IDRs is Negative. The rating actions partly reflect Fitch's recent downward revision of its macro-economic outlook for Spain and hence, the agency's view that the weaker economic environment will place further pressure on the transformed cajas' profitability in the short to medium term. Moreover, unemployment rates are set to remain high for some time and, together with the prolonged downturn in the property sector, this will continue to negatively affect credit quality. Fitch also has taken into consideration the entities' high exposure to the real estate development sector (pure real estate exposure of 20% of aggregate loans and foreclosures at end-Q311). Within the real estate sector, Fitch considers exposure to land of particular concern due to its long transformation period and the difficulties of appraising and selling this sort of asset in the absence of a liquid market. While the new three-year European Central Bank facilities ease refinancing risks and margin pressure, further loan de-leveraging is needed to reduce market funding dependence. In this context, the transformed cajas also need to complete the integration process, most of which started at end-2010, and achieve synergies. A downgrade of the ratings from the current levels would be most likely to emanate from an escalation of credit costs and failure to sustain capital levels and achieve expected synergies. The downgrade of BMN's Long-term IDR mostly reflects Fitch's concerns about expected higher provisioning needs to cover losses on its significant pure real estate exposures (20% of total loans and foreclosures). While BMN's management has demonstrated the ability to reduce real estate concentration by selling out properties during 2011, risk concentration to the property sector still remains significant. Moreover, BMN has some market funding reliance, although a large contingency liquidity buffer and ongoing loan deleveraging would help meet sizeable 2012-2013 debt maturities. BMN's Fitch core capital ratio was 6.2%. Its regulatory core capital benefits from EUR915 million funds from the Spanish government Fund for Orderly Bank Restructuring (FROB) and EUR242 million mandatory convertible bonds subscribed to in Q411 by third-party investors. The downgrade of Banca Civica's Long-term IDR mostly reflects Fitch's concerns about expected higher provisioning needs to cover losses on its significant pure real estate exposures (22% of total loans and foreclosures). Banca Civica also has some wholesale funding reliance, with certain maturity concentration in 2012, although the bank's available liquidity pool, further capacity to generate ECB eligible securities and ongoing loan deleveraging help to offset refinancing risk. The bank's Fitch core capital is moderate, but improved to 7.2% at end-Q311 thanks to an IPO process. Its regulatory core capital benefits from EUR977 million convertible preference shares subscribed by the FROB. The downgrade of BCaja3's Long-term IDR mostly reflects Fitch's concerns about expected higher provisioning needs to cover losses on its pure real estate exposures and land (29% and 15%, respectively, of total loans and foreclosures at end-Q311, which is higher than its peers). However, BCaja3's ratings also reflect a comfortable liquidity and funding position, backed by its large and stable customer deposit base and low market funding reliance. The affirmation of Liberbank's Long-term IDR reflects the benefit of an asset protection scheme (APS) in bolstering reserve coverage and strengthened capital levels (Fitch core capital ratio of 8.4% at end-H111). The latter was further helped by internal capital generation as well as one-off gains from asset sales, in particular the sale of a 77% stake in its cable company subsidiary in October 2011. Nevertheless, Fitch notes that profitability will remain under pressure amid economic deterioration. Liberbank's coverage of problem loans is partly explained by the substantial APS received from the Deposit Guarantee Fund at the time of the integration of Caja de Ahorros de Castilla-La Mancha, which was intervened by the Bank of Spain in March 2009. Kutxabank's ratings primarily reflect its strong franchise in its home markets, particularly in the prosperous and industrialized Basque Country, where unemployment is much lower than in the rest of Spain, which provides it with a stable retail funding base and satisfactory asset quality. The ratings also reflect its good management, pure real estate exposure that is lower than its peers, sound earning generation and robust capitalization. Although the bank holds the assets and liabilities of BBK Bank CajaSur, Kutxabank's coverage of its real estate exposure benefits from upfront credit losses and APS funds, the latter received at the time of Caja de Ahorros y Monte de Piedad de Cordoba's (CajaSur) acquisition. Although Kutxabank has some single-name concentration from combined credit and equity risks exposures, the latter are mostly in sound Spanish utilities companies. 62% of total loans are to individuals, providing risk diversification. Following the transfer of all of the cajas' assets and liabilities (except on-balance-sheet Social Welfare Funds) to the recently created BMN, BCaja3 and Kutxabank, Fitch has also withdrawn the constituent cajas' ratings and the cajas' debt issues have been transferred to the banks. Fitch has also assigned VRs to BMN, BCaja3 and Kutxabank. The banks' Support Ratings are all '3' and their Support Rating floors (SRF) are 'BB+', indicating that Fitch believes there is a moderate probability that the banks would receive sovereign support, if needed. All of the banks' IDRs are above their SRFs. State guaranteed debt, where rated, remains on Rating Watch Negative (RWN), mirroring the RWN placed on the Kingdom of Spain on December 16, 2011. The RWNs that remain outstanding on any subordinated securities are likely to be resolved in Q112. The resolution of the RWNs on any preference shares issued by the banks/their former affiliates reflects the application of Fitch's new criteria 'Rating Bank Regulatory Capital and Similar Securities' dated December 15, 2011. The rating actions are as follows: Banco Mare Nostrum, SA: -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook Negative -- Short-term IDR: downgraded to 'F3' from 'F2' -- Viability Rating: assigned at 'bbb' -- Support Rating: affirmed at '3', -- Support Rating Floor: affirmed at 'BB+' Banco Mare Nostrum Group: -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook -- Negative; withdrawn -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn -- Individual rating: affirmed at 'C', withdrawn -- Viability rating: downgraded to 'bbb' from 'bbb+', withdrawn -- Support Rating: affirmed at '3', withdrawn -- Support Rating Floor: affirmed at 'BB+', withdrawn Caja de Ahorros de Murcia (Cajamurcia): -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook Negative, withdrawn -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn -- Senior unsecured debt (including long-term CP): downgraded to 'BBB' from 'BBB+', transferred to BMN -- Short-term senior unsecured debt and commercial paper: downgraded to 'F3' from 'F2'; transferred to BMN -- Subordinated debt: downgraded to 'BBB-' from 'BBB', transferred to BMN -- Preferred Stock: downgraded to 'B+' from 'BB', removed from RWN, transferred to BMN -- State-guaranteed debt: 'AA-' Rating Watch Negative (RWN) maintained, transferred to BMN The impact, if any, from today's rating action, on Cajamurcia's covered bonds will be detailed in a separate comment. Caixa d'Estalvis del Penedes (Caixa Penedes): -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook Negative, withdrawn -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn -- Preferred Stock: downgraded to 'B+' from 'BB', removed from RWN, transferred to BMN -- State-guaranteed debt: 'AA-' RWN maintained, transferred to BMN Caja General de Ahorros de Granada (Caja Granada): -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook Negative, withdrawn -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn Caja de Ahorros y Monte de Piedad de las Baleares (Sa Nostra): -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook Negative, withdrawn -- Short-term IDR: downgraded to 'F3' from 'F2', withdrawn -- Subordinated debt: downgraded to 'BBB-' from 'BBB', transferred to BMN -- Preferred Stock: downgraded to 'B+' from 'BB', removed from RWN, transferred to BMN -- State-guaranteed debt: 'AA-' RWN maintained, transferred to BMN Banca Civica: -- Long-term IDR: downgraded to 'BBB' from 'BBB+', Outlook Negative -- Short-term IDR: downgraded to 'F3' from 'F2' -- VR: downgraded to 'bbb' from 'bbb+' -- Individual Rating: affirmed at 'C' -- Support Rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- Subordinated debt: downgraded to 'BBB-' from 'BBB' -- Upper tier 2 subordinated debt: downgraded to 'BB+' from 'BBB-', maintained on RWN -- Preferred stock: downgraded to 'B+' from 'BB', removed from RWN -- State-guaranteed debt: 'AA-', maintained on RWN Banco Grupo Caja 3 S.A (BCaja3): -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook -- Negative, removed from RWN -- Short-term IDR: affirmed at 'F3' -- Viability Rating: assigned at 'bbb-' -- Support Rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' Caja Tres Group: -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook Negative, removed from RWN, rating withdrawn -- Short-term IDR: affirmed at 'F3'; rating withdrawn -- Viability Rating: downgraded to 'bbb-' from 'bbb'; removed from RWN, rating withdrawn -- Individual Rating: affirmed at 'C'; removed from RWN, rating withdrawn -- Support Rating: affirmed at '3'; rating withdrawn -- Support Rating Floor: affirmed at 'BB+'; rating withdrawn Caja de Ahorros Inmaculada de Aragon (CAI): -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook Negative, removed from RWN, rating withdrawn -- Short-term IDR: affirmed at 'F3'; rating withdrawn -- Subordinated debt: downgraded to 'BB+' from 'BBB-'; removed from RWN, transferred to BCaja3 Caja de Ahorros y Monte de Piedad del Circulo Catolico de Obreros de Burgos: -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook Negative, removed from RWN, rating withdrawn -- Short-term IDR: affirmed at 'F3'; rating withdrawn -- Senior unsecured debt: downgraded to 'BBB-' from 'BBB'; removed from RWN, transferred to BCaja3 Monte de Piedad y Caja General de Ahorros de Badajoz: -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook Negative, removed from RWN, rating withdrawn -- Short-term IDR: affirmed at 'F3'; rating withdrawn Liberbank: -- Long-term IDR: affirmed at 'BBB+'; Outlook revised to Negative from Stable -- Short-term IDR: affirmed at 'F2' -- Viability Ratings: affirmed at 'bbb+' -- Support Rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- State-guaranteed debt: 'AA-' RWN maintained Banco de Castilla-La Mancha: -- Long-term IDR: affirmed at 'BBB+', Outlook revised to Negative from Stable -- Short-term IDR: affirmed at 'F2' -- Support rating: affirmed at '2' -- Senior unsecured debt: affirmed at 'BBB+' -- Lower Tier 2 subordinated debt: affirmed at 'BBB' -- Upper Tier 2 subordinated debt: 'BBB-', RWN maintained Kutxabank: -- Long-term IDR: assigned 'A-'; Outlook Negative -- Short-term IDR: assigned 'F2' -- Viability Rating: assigned 'a-' -- Support Rating: assigned '3' -- Support Rating Floor: assigned 'BB+' Bilbao Bizkaia Kutxa (BBK): -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Negative; removed from RWN; withdrawn -- Short-term IDR: downgraded to 'F2' from 'F1'; removed from RWN; withdrawn -- Viability Rating: downgraded to 'a-' from 'a'; removed from RWN; withdrawn -- Individual Rating: downgraded to 'B/C' from 'B'; removed from RWN; withdrawn -- Support Rating: affirmed at '3'; withdrawn -- Support Rating Floor: affirmed at 'BB+'; withdrawn -- Long-term senior unsecured debt: downgraded to 'A-' from 'A'; removed from RWN; transferred to Kutxabank -- Subordinated debt: downgraded 'BBB+' from 'A-'; removed from RWN; transferred to Kutxabank BBK Bank CajaSur: -- Senior unsecured debt: downgraded to 'A-' from 'A'; removed from RWN -- Subordinated debt: downgraded to 'BBB+' from 'A-'; removed from RWN -- Preferred stock: downgraded to 'BB' from 'BBB'; removed from RWN -- State-guaranteed debt: 'AA-' RWN maintained Caja de Ahorros y Monte de Piedad de Guipuzkoa y San Sebastian (Kutxa): -- Long-term IDR: affirmed at 'A-', Outlook Negative; removed from RWN; withdrawn -- Short-term IDR: affirmed at 'F2'; withdrawn -- Viability Rating: affirmed at 'a-'; removed from RWN; withdrawn -- Individual Rating: affirmed at 'B/C'; withdrawn -- Support Rating: affirmed at '3'; withdrawn -- Support Rating Floor: affirmed at 'BB+'; withdrawn Caja de Ahorros de Vitoria y Alava (Caja Vital): -- Long-term IDR: upgraded to 'A-' from 'BBB+', Outlook Negative; removed from Rating Watch Positive (RWP); withdrawn -- Short-term IDR: affirmed at 'F2'; withdrawn -- Viability Rating: upgraded to 'a-' from 'bbb+'; removed from RWP; withdrawn -- Individual Rating: upgraded to 'B/C' from 'C'; removed from RWP; withdrawn -- Support Rating: affirmed at '3'; withdrawn -- Support Rating Floor: affirmed at 'BB+'; withdrawn -- Long-term senior unsecured debt: upgraded at 'A-' from 'BBB+'; removed from RWP; transferred to Kutxabank -- Short-term senior unsecured debt: affirmed at 'F2'; transferred to Kutxabank -- State-guaranteed debt: 'AA-' RWN maintained; transferred to Kutxabank =========================== U N I T E D K I N G D O M =========================== BRITISH MIDLAND: Auditors Raise Going Concern Doubt --------------------------------------------------- Andrew Parker at The Financial Times reports that auditors to BMI British Midland, Lufthansa's lossmaking UK airline, have raised doubts about its ability to continue as a going concern. The FT relates that PricewaterhouseCoopers said several uncertainties surrounding BMI, including plans to sell the airline to International Airlines Group, "may cast significant doubt over the ability of the company to continue as a going concern". The statement was made in the newly released 2010 accounts of British Midland Airways Limited, BMI's main trading company, where the directors said the planned sale to IAG was "fundamental" to the company's future, the FT notes. The directors added BMI should have sufficient funding until March 31, when Lufthansa hopes to complete the sale of its UK subsidiary to IAG, according to the FT. However, the sale deadline could be missed if the competition authorities subject the transaction to extensive scrutiny, and any slippage beyond March 31 would give IAG or Lufthansa the right to walk away from the deal, the FT states. IAG, parent of British Airways, is proposing to pay up to GBP172.5 million in cash for BMI, mainly because Lufthansa's UK subsidiary is the second largest holder of valuable take-off and landing slots at capacity-constrained Heathrow airport in London, the FT discloses. British Midland Airways, which does business as bmi, -- http://www.iflybritishmidland.com/-- carries passengers to some 30 countries, mainly in the UK but also in continental Europe, the Middle East, Asia, and Africa. It operates a fleet of about 50 jets, including Airbus and Embraer models. Low-fare subsidiary bmi baby serves about 30 destinations in Europe with a fleet of about 20 Boeing 737s. bmi is a member of the Star Alliance global marketing group, which includes UAL's United Airlines, Air Canada, and Singapore Airlines. In mid-2009, fellow Star Alliance member and global airline giant Lufthansa acquired majority ownership of bmi. CHURCH'S CHINA: Closes Shop After More Than 150 Years ----------------------------------------------------- BBC News reports that Church's China, one of Northamptonshire's oldest stores, is to close after trading for more than 150 years. Church's china, which has outlets in the Ridings Arcade in Northampton and in Market Harborough, has gone into voluntary liquidation, BBC says. BBC relates that the economy and excessive pressure from online competition has been blamed for the company's demise. According to the report, the former managing director, Stephen Church, said he felt terribly sad for the staff who will lose their jobs. Nine members of staff work at the shop, BBC relays. Church's China operates China & Glassware Shops based in Northampton. DARLINGTON FC: Stadium Owners Offer GBP50,000 to Help Club ---------------------------------------------------------- BBC News reports that Darlington Arena Limited have offered the supporters trust a donation of GBP50,000 to help save the club, providing they can find a similar sum. BBC relates that stadium owners Philip Scott and Graham Sizer made the gesture to give administrators further time to find a buyer, with the club in administration. According to the report, administrators have warned the club is at risk of liquidation if a buyer cannot be found within the next week. The club's home fixture with Fleetwood on January 23 is currently at risk, the report notes. Negotiations are also to take place to discuss reducing land covenants between the stadium owners, the club and the council, BBC relays. BBC notes that covenants currently exist that were placed by the Council when the stadium was built, in return for a reduction in land costs. Reducing the covenants would open up the possibility of selling the stadium and/or land for non-sporting usage, allowing debts to be met, and the possibility of funding a more manageable venue for the football club, according to BBC. BBC say Darlington moved to the stadium from Feethams, their home for 120 years, in 2003. But the club lost ownership of it when loan agreements with Scott and Sizer were not met by former chairman George Houghton and eventually the club's holding company, DFC Investments Ltd, went into liquidation, says BBC. As major creditors, the pair took control of the stadium and leased it back to the football club on a 'peppercorn rent' of GBP10,000 a year, BBC adds. As reported in the Troubled Company Reporter-Europe on Jan. 6, 2012, Business Sale said Darlington Football Club has been placed into administration after a consortium of local businessmen was unable to reach a buyout deal with the owner. The Blue Square Bet Premier side had been the subject of a bid by a group calling themselves the Darlington Football Club Rescue Group (DFCRG), according to Business Sale. The report related that current owner and chairman, Raj Singh, said he had been unable to settle on a sustainable deal with the group and had called in administrators. EMI GROUP: Guy Hands' Bid for PwC to Disclose Valuation Tossed -------------------------------------------------------------- Salamander Davoudi and Jane Croft at The Financial Times report that Guy Hands has been dealt a blow in his legal dispute with Citigroup over the US bank's seizure of EMI Group. According to the FT, a UK court has thrown out the application of Mr. Hands demanding that PricewaterhouseCoopers, the music group's administrators, and other advisers disclose valuation documents. In his arguments, Mr. Hands' barrister claims that the joint administrators were not validly appointed and that the sale of EMI was undervalued or should not have taken place at all, the FT discloses. Citigroup wrote off GBP2.2 billion of its GBP3.4 billion loans to Mr. Hands' 2007 ill-fated buy-out when it seized control of the music company last year, leaving EMI with more than GBP300 million in cash and GBP1.2 billion of debt, the FT recounts. The administrators sold EMI to Citigroup for an undisclosed amount through a pre-packaged administration, the largest on record, the FT states. According to the FT, Mr. Hands' submission stated that the sale of EMI's assets to Citi was "to crystallize a loss by Terra Firma of the entirety of its investment of about GBP1.85 billion" and added that there were "serious concerns about the circumstances surrounding the sale by the joint administrators". But the judge, as cited by the FT, said there was not "the slightest suggestion" that Citi had "effected sales at undervalue" which would be "entirely contrary to its commercial interests". He also found that it did not appear TF needed "any of the valuations" to formulate their claims in so far as they centre on the value of EMI Group, the FT discloses. The FT notes that the judge also found, "I do not consider that the disclosure of the valuations before proceedings have started will assist in achieving a fair disposal of the anticipated proceedings." EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth largest record company in terms of market share (behind Universal Music Group, Sony Music Entertainment, and Warner Music Group). It houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints and divisions such as Capitol Records and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. EMI Music operates through regional divisions (EMI Music North America, International, and UK & Ireland). Financial services giant Citigroup owns EMI. * UK: Companies Face Pressure to Fill In Pension Deficits --------------------------------------------------------- Norma Cohen at The Financial Times reports that the aggregate deficit of UK corporate pension schemes with a shortfall soared to a record at the end of December, according to one official measure, as the effects of falling interest rates -- which cause liabilities to swell -- overwhelmed the impact of higher stock markets. According to the FT, The UK's Pension Protection Fund said that at the end of December, its 7800 Index, which measures the assets and liabilities of UK schemes, showed a record shortfall for schemes in deficit of GBP277.1 billion (US$429.2 billion), up from GBP246.7 billion at the end of November 2011 and from GBP61.0 billion at the end of December 2010. The latest numbers have provoked the National Association of Pension Funds, a trade body representing employers who sponsor retirement funds, to underscore the need for funding rules to be applied flexibly, the FT relates. "This Index shows that pension funds are falling even further into the red, and businesses will be under more pressure to fill in the deficits," the FT quotes Joanne Segars, NAPF chief executive, as saying. * Bingham's London Office Promotes Four Lawyers to Partnership -------------------------------------------------------------- Bingham on Jan. 5 disclosed that it has elected four lawyers in its London office to join the firm's partnership. All four are in Bingham's market leading Financial Restructuring, Transactional Finance and Securities and Financial Institutions Litigation practices. "Bingham has seen consistent growth over the past 16 years" said Jay Zimmerman, chairman of Bingham. "The addition of these partners reflects the contribution of our successful London office to that growth, and is a further investment in our global finance platform." "We are pleased to welcome these lawyers to the partnership," said James Roome, managing partner of the London office and co- chair of the firm's global Financial Restructuring Group. "Following steady investment in our core practice areas in London, the promotion of these four lawyers will further strengthen our finance, financial restructuring and litigation resources." Bingham's London office represents many of the word's largest insurance companies, pension funds, investment banks, investments funds, distressed debt investors, international agencies, governments and multinational corporate groups. Lawyers from the office have acted on a number of high-profile financial restructuring and financial litigation cases in recent years, including representing the bondholders of the three Icelandic banks (Glitnir, Kaupthing and Landsbanki) that are currently being restructured; the bondholders of Polish telecom and energy conglomerate Elektrim, on nearly a decade of litigation which resulted in a total recovery for bondholders of more than EUR700 million; the noteholders on the EUR1.3 billion financial restructuring of the Quinn Group; and the bondholders in nearly all the restructurings of high yield bonds in Norway, including Petromena and Skeie Drilling. "The election to partnership is well deserved for these lawyers," said Barry Russell, head of the firm's London Finance Group and co-head of Bingham's Transactional Finance Group. "Each have played an important role in some of our most significant matters over the past several years, and we expect they will contribute to the further growth of the London office." The partnerships are effective Jan. 1. The newly elected partners, listed alphabetically, are: Neil Devaney. Mr. Devaney has a wide range of finance, restructuring and insolvency experience, working with creditors, debtors, sponsors and insolvency practitioners in Europe and the U.S. His current practice focuses on advising par and distressed investors on the restructuring of troubled European companies. Typically acting on the creditor side, Mr. Devaney has a wealth of cross border experience and has been involved some of the largest debt for equity swaps to have been implemented in Europe in the last few years. Michael Gustafson. Mr. Gustafson represents financial institutions on a variety of debt financing transactions, with an emphasis on the representation of insurance companies and other institutional investors in cross-border private placements. He also has experience acting for creditors on complex U.K. and cross-border workouts and financial restructurings. Richard Hornshaw. Mr. Hornshaw, formerly based in the London office and now in the firm's Hong Kong office, acts for financial institutions on high-value, complex and cross-border disputes, and focuses on finance and securities law matters as well as insolvency and restructuring situations and contentious regulatory disputes. He has experience conducting and resolving disputes throughout the Asia-Pacific region, in the U.K. and Europe. Liz Osborne. Ms. Osborne concentrates on U.K. and cross-border insolvency, workouts and restructurings, and represents hedge funds, bondholders, institutional lenders, secondary market investors and creditor committees in relation to strategic and legal issues concerning their distressed debt and special situation investments. These four promotions in London are in addition to the election of another London lawyer, financial regulatory and investment funds lawyer Christopher Leonard, to Bingham's partnership in June of 2o11. Mr. Leonard advises clients on all aspects of the financial regulatory framework in the U.K. and on commercial and securities issues affecting the financial services industry. Mr. Leonard's clients include U.K.- and U.S.-based retail and investment banks, brokerages, institutional asset managers, fund managers, product distributors, and start up financial services companies. The partner elections, a total of nine firmwide, are the culmination of a strong 2011 for Bingham, which included the expansion of key practices in strategic global markets, most notably with the launch of its Beijing office and with the addition of Mark Dawkins (former Managing Partner of Simmons & Simmons) as a litigation partner in the London office. As noted above, Richard Hornshaw relocated to Bingham's Hong Kong office in 2011 to help grow the region's securities and financial institution litigation capabilities. Bingham -- http://www.bingham.com -- is a global law firm with more than 1,000 lawyers in 14 offices in the U.S., Europe and Asia. The firm offers a broad range of market-leading practices focused on global financial services firms and Fortune 100 companies. =============== X X X X X X X X =============== * Euler Hermes Expects Number of Failed Companies to Rise in 2012 ----------------------------------------------------------------- According to Reuters, credit insurance company Euler Hermes said in a report that the number of failed companies is expected to rise by 3% globally this year, led by Europe, under the weight of an economic slowdown and tighter monetary and budgetary policy. Reuters relates that Euler Hermes Chief Economist Ludovic Subran said, "Failures will likely increase by 12 percent in the euro zone, including a 19 percent rise among Mediterranean countries that have been 'very weakened by the crisis.'" "Growth is running out of steam in emerging markets and getting bogged down in debt-submerged markets," Reuters quotes Mr. Subran as saying. "The euro zone, where demand is depressed and prospects for exports are reduced, is clearly at the epicentre of the crisis." * 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, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. * * * End of Transmission * * *