/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/120126.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 26, 2012, Vol. 13, No. 19 Headlines D E N M A R K * DENMARK: Close to Extending Bank Package to Avert Insolvencies G E R M A N Y HEIDELBERGER DRUCKMASCHINEN: Moody's Lowers CFR to 'B3' HEIDELBERGER DRUCKMASCHINEN: S&P Cuts Corp. Credit Rating to 'B' Q-CELLS SE: Unveils Financial Restructuring G R E E C E ALPHA BANK: Moody's Lowers Ratings on Covered Bonds to 'B1' IRIDA PLC: S&P Affirms 'BB+' Rating on Class A Notes I R E L A N D CUSTOM HOUSE: Irish Rugby Star Invested EUR.5MM in Firm DRYDEN XV: S&P Raises Rating on Class E Notes to 'BB-' FASTNET LINE: Judge Agrees to Extend Court Protection K A Z A K H S T A N ALFA-BANK: S&P Says Rating Reflects 'bb-' Anchor for Banks N E T H E R L A N D S MARCO POLO SEATRADE: Wants Plan Filing Deadline Moved to Feb. 17 R U S S I A SOVCOMFLOT AO: S&P Assesses Stand-alone Credit Profile at 'bb' U N I T E D K I N G D O M BXL SERVICES: In Administration Amid Difficulty Making Payments FOUNTAINS: Goes Into Administration, Cuts 10 Jobs ONLINE STAFFING: High Court Orders Liquidation PEACOCKS: KPMG Begins Marketing Process for Retailer Firm PETROPLUS GROUP: Two More Subsidiaries Go Into Administration PORTSMOUTH FOOTBALL: Faces Winding-Up Threat PREMIER FOODS: Accelerates Disposal Process of Two Brands RECRUITMENT WEB: High Court Orders Liquidation SEAFRANCE: Offers Full Refund to Booked Tickets TRUCK FESTIVAL: Event to Go Ahead Under New Management YELL GROUP: Moody's Changes Probability of Default Rating to Caa2 * EUROPE: Restructurings to Increase in 2012, Debtwire Poll Shows * UK: Nearly 10,000 Construction and Mfg Firms Go Bust in 2011 X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* ============= D E N M A R K ============= * DENMARK: Close to Extending Bank Package to Avert Insolvencies ---------------------------------------------------------------- Frances Schwartzkopff at Bloomberg News reports that Denmark is close to extending a bank package designed to encourage mergers in the industry and avert insolvencies. The decision to broaden the consolidation bill follows a dearth of mergers in the country's bank industry even after the government pushed through a package designed to subsidize takeovers of troubled lenders, Bloomberg relates. Vestjysk Bank A/S this month said it is considering asking the government to convert its hybrid capital to equity to help keep the lender afloat after its share price plunged to the lowest since at least 1989 amid speculation it was close to insolvency, Bloomberg recounts. "In light of what's happening with Vestjysk Bank, we have to see if we could give some more incentives so that other banks can take their part of the responsibility," Bloomberg quotes Brian Mikkelsen, a member of the parliament's business committee, as saying on Tuesday. Mr. Mikkelsen was Denmark's economy minister until last year and one of the architects of the consolidation bill, Bloomberg notes. Most of Denmark's roughly 120 banks remain cut off from international funding markets after the February failure of Amagerbanken A/S triggered senior creditor losses, Bloomberg discloses. ============= G E R M A N Y ============= HEIDELBERGER DRUCKMASCHINEN: Moody's Lowers CFR to 'B3' ------------------------------------------------------- Moody's Investors Service downgraded Heidelberger Druckmaschinen AG's Corporate family rating (CFR) and Probability of default rating (PDR) to B3 from B2. The Caa1 rating on the EUR304 million senior unsecured notes due 2018 remains unchanged. The outlook on all ratings remains negative. Downgrades: Issuer: Heidelberger Druckmaschinen AG -- Probability of Default Rating, Downgraded to B3 from B2 -- Corporate Family Rating, Downgraded to B3 from B2 Ratings Rationale The rating action was prompted by Heidelberger Druck's announcement of a sizeable restructuring program "FOCUS 2012" which is expected to result in expenses of up to EUR150 million and material cash outflows in the next 12 to 15 months. This will put additional pressure on already weak credit metrics, which continue to suffer from muted demand for sheetfed offset printing presses. While Moody's understands that the restructuring program will help to reduce capacity by 15% and to lower the company's break-even point to below EUR2,400 million revenues, the benefits will not be fully realized before FY 2013/14. The rating action also reflects Moody's concern that continued deteriorating operating conditions in the printing industry could require additional measures to reduce overcapacity. The negative outlook reflects the prospects for continued weak industry conditions in Europe and North America and the risk that the largest global print fair, the drupa, in May 2012, will not bring the necessary boost in order intake to improve profitability and financial metrics from a low base in subsequent quarters. While the announced restructuring program should support the viability of the company in the medium term, the execution risk regarding the timing of realizing these benefits remains high in Moody's view. The positive momentum which the company experienced during the previous fiscal year continued to fade in Q3 2011/12 driven partially by heightened macroeconomic uncertainty. According to preliminary figures, revenues remained flat with EUR630 million compared to the previous quarter (-8% y-o-y) and reported EBIT was just break-even at EUR2 million (EUR5 million in Q2 2011/12). Order intake declined by 4% to EUR640 million compared to the previous quarter. On the positive side, the company was able to maintain reported net debt constant at EUR275 million benefiting from stringent working capital management. Moody's forecasts that Heidelberger Druck's revenues in FY 2012/13 will continue to be impacted by the current weak macroeconomic environment and an overall shrinking print industry in industrialized countries. At the same time Moody's views Heidelberger Druck to be well positioned to capitalize on its good market position in China and South America and its focus on the less cyclical packaging industry which offer positive long- term growth opportunities. However, Moody's expects revenues will remain well below pre-crisis levels in the long-term. Anemic growth could support marginal improvements in profitability and credit metrics until the full benefit of the restructuring program can be realized. Nevertheless, until then leverage and interest cover will position the company weakly in its rating category (adjusted debt/EBITDA 6.4x, EBIT/interest expense 0.4x at September 30, 2011). Heidelberger Druck's B3 CFR balances the weak industry environment, the company's high leverage, low operating margins and negative FCF against the group's strong competitive position as the global leading manufacturer of sheetfed offset printing presses and related equipment, which has not been impaired during the last downturn. Heidelberger Druck's short-term liquidity over the next 12 months is good in terms of size, even including the possibility of sizeable cash outflows from the restructuring measures, but quality is affected by financial covenants with diminishing headroom. At September 30, 2011, Heidelberger Druck had cash on balance sheet of EUR163 million (of which EUR80 million are subject to foreign exchange restrictions). In addition, Heidelberger Druck had access to a EUR500 million RCF due at the end of 2014, which was largely undrawn at September 30, 2011. The group's internal and external cash sources should be sufficient to cover its cash outflows relating to working capital, capex and the restructuring program. Heidelberger Druck's maturity profile is reasonably spread, with EUR50 million promissory notes maturing in March 2013 and EUR304 million senior unsecured notes due March 2018. The unchanged Caa1 rating (LGD5 - 78%) on the EUR304 million senior unsecured notes due 2015 reflects the unsecured notes' junior ranking behind a sizeable amount of senior secured debt, which benefits from pledges on most of Heidelberger Druck's assets. This also reflects Moody's view that in a default scenario the RCF would be largely used for cash drawings or guarantees. TRIGGERS FOR A POTENTIAL DONWGRADE/UPGRADE Negative rating pressure would build in case of the company's inability to improve operating performance and generate a balanced free cash flow (adjusted for the announced restructuring expenses of up to EUR150 million) over the next few quarters. Rating pressure could also arise from insufficient headroom under financial covenants, which would weaken the company's liquidity profile. Positive rating pressure would arise in case of Heidelberger Druck's ability to (i) to sustainably generate positive FCF and improve its operating profitability supporting a reduction in leverage to below 6.5x debt/EBITDA and EBIT/interest expense above 1.0x and (ii) visibility that the company can harvest the benefits of its restructuring program leading to further improvements in credit metrics in the medium term. The principal methodology used in rating Heidelberger Druckmaschinen was Global Heavy Manufacturing Rating Methodology published in November 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Based in Heidelberg, Germany, Heidelberger Druckmaschinen AG is the leading manufacturer of sheet fed offset printing presses with revenues of approximately EUR2.6 billion as per financial year end March 2011. Heidelberger Druckmaschinen AG supplies equipment for sheet fed offset printing as well as associated upstream and downstream activities, services and consumables to printing companies, primarily in the advertising and packaging printing segment. HEIDELBERGER DRUCKMASCHINEN: S&P Cuts Corp. Credit Rating to 'B' ---------------------------------------------------------------- Standard and Poor's Ratings Services lowered its long-term corporate credit rating on Germany-based printing equipment manufacturer Heidelberger Druckmaschinen AG (HDM) to 'B' from 'B+'. "At the same time, we lowered the issue rating on the EUR304 million senior unsecured notes to 'CCC+' from 'B-'. The recovery rating on this debt is '6', indicating our expectations of negligible (0%-10%) recovery in the event of a payment default. The outlook is negative," S&P said. "The downgrade reflects a negative revision of our financial forecasts for HDM in light of the weak recent performance by the company, weak conditions and prospects for HDM's end-markets, as well as our view of execution risks on the company's announced restructuring program," S&P said. "According to our revised base-case projections, financial debt protection measures in HDM's fiscal year ending March 31, 2012, are likely to deteriorate significantly further than we previously expected. We also expect improvements in HDM's fiscal year 2013 to be weaker than we earlier expected," S&P said. "In the first nine months of its fiscal year 2012, HDM reported sales down about 4% against the comparable period, primarily as a result of economic uncertainties affecting HDM's customers' decisions to buy new printing machines. Operating profit (EBIT) over the nine months remained at negative EUR19 million, according to preliminary results released by HDM. According to our calculations, the EBITDA margin in the nine months to Dec. 31, 2011, was about 3%, considerably below the levels our earlier base-case forecast (5%-6%)," S&P said. "We have lowered our base-case forecast for HDM's fiscal year 2012 to incorporate a moderate sales decline year on year. We now expect an EBITDA margin of about 4%, translating into EBITDA of about EUR90 million-EUR100 million. This base case does not incorporate any special charges related to HDM's announced restructuring program," S&P said. "For fiscal 2013, we expect HDM to report a slightly improving EBITDA margin in the range of 4%-5%, again not considering restructuring charges, partly reflecting benefits from the restructuring on the back of stable sales," S&P said. "We do not, however, share the view of the management that HDM will be able to achieve an operating profit of about EUR150 million in fiscal 2014, even if the announced restructuring were to be implemented successfully," S&P said. "The negative outlook incorporates our expectation of stable revenues in HDM's fiscal year 2013 coupled with a weak EBITDA margin of 3%-4% before restructuring costs. We anticipate a minimal improvement in operating profits (EBITDA) for the fiscal year 2014 (ending March 31, 2014) with an EBITDA margin in the range of 5%-6%, reflecting the benefits from the cost restructuring program. We do, however, see a risk that the restructuring program may not bear fruit. We also view a continuation of weak end-market demand, notably from developed regions such as Europe and the U.S., as a key risk for the rating," S&P said. Q-CELLS SE: Unveils Financial Restructuring ------------------------------------------- Gerrit Wiesmann at The Financial Times reports that Germany's Q-Cells announced a financial restructuring centered on concessions from bondholders. According to the FT, the company said it was forced to commit to the move after considerable writedowns on investments at the end of last year resulted in an as-yet undisclosed full-year loss as well as considerable damage to its balance sheet. The FT notes that while Q-Cells was adamant it was not currently considering insolvency proceedings, it is relying on the goodwill of lenders to accept only partial repayment of a bond -- with a nominal value of EUR202 million -- coming due next month. Should a large majority of holders of this bond issue agree to a sufficient writedown, Q-Cells plans to ask holders of bonds maturing in 2014 and 2015 -- with a nominal value of some EUR376 million -- to convert their holdings into new equity, the FT discloses. This would give Q-Cells' balance sheet an infusion of new capital -- although this move would probably also severely dilute the stakes of current shareholders in a company with a current market capitalization of about EUR70 million, the FT states. According the FT, the company, which became the latest casualty of an industry beset by overcapacity and fierce competition from China, stressed that its fourth-quarter writedowns had not hit its cash position and did "not have a direct effect on the company's liquidity". The company, as cited by the FT, said that revenues hit about EUR1 billion last year and cash flow topped its EUR300 million-target. Q-Cells SE is a German solar cell and module maker. =========== G R E E C E =========== ALPHA BANK: Moody's Lowers Ratings on Covered Bonds to 'B1' ----------------------------------------------------------- Moody's Investors Service has downgraded five Greek covered bond transactions issued under the Greek covered bond law. These rating actions conclude the review initiated on November 11, 2011, on the back of the increased likelihood and severity of the Greek sovereign defaulting on its debt and the implications of such a default for Greek covered bonds. The TPI assigned to Alpha Direct Issuance CB, EFG CB I, EFG CB II and NBG CB II remains at "Improbable" and the TPI assigned to NBG CB I remains at "Very Improbable." The rating actions are: - Covered bonds issued by Alpha Bank A.E. (Alpha) under its Direct Issuance Covered Bond Programme (Alpha Direct Issuance CB): Downgraded to B1 from Ba3 (on review for downgrade) - Covered bonds issued by EFG Eurobank Ergasias S.A. (Eurobank EFG) under its Mortgage Covered Bond Programme (EFG CB I): Downgraded to B1 from Ba3 (on review for downgrade) - Covered bonds issued by Eurobank EFG under its Mortgage Covered Bond Programme II (EFG CB II): Downgraded to B2 from B1 (on review for downgrade) - Covered bonds issued by National Bank of Greece S.A. (NBG) under its Global Covered Bond Programme (NBG CB I): Downgraded to B1 from Ba3 (on review for downgrade) - Covered bonds issued by NBG under its Covered Bond Programme II (NBG CB II): Downgraded to B1 from Ba3 (on review for downgrade) Ratings Rationale The action reflects Moody's assessment of the increased probability and severity of a disorderly default by Greece on its debt, and the implications of such a default for Greek covered bonds. In the event of a disorderly Greek sovereign default, the functioning of the banking system and the state could be materially impaired, and the economy would very likely experience a further sharp contraction. A disorderly default would also increase the likelihood of Greece exiting the euro area, accompanied by a return to a deeply devalued national currency. Whilst such an event is not Moody's central scenario, the probability of it occurring is rising. In that event, the ability for Greek borrowers to repay their debt would weaken significantly, beyond that already assumed. Even taking into account the low likelihood of this scenario, its effect would be such that Moody's has concluded that the rating for any Greek covered bond could not be higher than B1. The documentation of Greek covered bond transactions is governed by UK law. In the remote event of a redenomination in Greece, it is possible the underlying assets backing the notes may be converted into a new national currency while the rated notes would still be denominated in euro. In this scenario, and for a given asset performance level, notes will suffer different levels of losses arising from the redenomination risk, depending on the credit enhancement levels. As part of the rating action, Moody's downgraded the ratings of Greek covered bonds to B1 and B2, depending on the amount of non- euro-denominated assets in the cover pool. EFG CB II has been downgraded to B2, as the vast majority of the loans are denominated in Swiss Francs; there is a limited share of these loans in the other cover pools (hence the B1 ratings). For further information on the rating actions taken by Moody's Structured Finance Group, see the press release "Moody's downgrades Greek structured finance transactions" published on 19 January 2012. Moody's will continue to monitor the developing situation in Greece and may take further rating actions depending on which scenario materializes regarding the Greece sovereign debt repayment. Key Rating Assumptions/Factors Covered bond ratings are determined after applying a two-step process: expected loss analysis and TPI framework analysis. EXPECTED LOSS: Moody's determines a rating based on the expected loss on the bond. The primary model used is Moody's Covered Bond Model (COBOL), which determines expected loss as (i) a function of the issuer's probability of default (measured by the issuer's rating); and (ii) the stressed losses on the cover pool assets following issuer default. TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI), which indicates the likelihood that timely payment will be made to covered bondholders following issuer default. The effect of the TPI framework is to limit the covered bond rating to a certain number of notches above the issuer's rating. Sensitivity Analysis The robustness of a covered bond rating largely depends on the credit strength of the issuer. The TPI Leeway measures the number of notches by which the issuer's rating may be downgraded before the covered bonds are downgraded under the TPI framework. The TPI assigned to Alpha Direct Issuance CB, EFG CB I, EFG CB II and NBG CB II is "Improbable" and the TPI assigned to NBG CB I is "Very Improbable." The TPI Leeway for these program is limited, and thus any downgrade of the issuer ratings may lead to a further downgrade of the covered bonds. A multiple-notch downgrade of the covered bonds might occur in certain limited circumstances. Some examples might be (i) a sovereign downgrade negatively affecting both the issuer's senior unsecured rating and the TPI; (ii) a multiple notch downgrade of the issuer; or (iii) a material reduction of the value of the cover pool. 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 covered bonds transactions in some countries, which could result in rating downgrades. Rating Methodology The principal methodology used in these ratings was "Moody's Rating Approach to Covered Bonds" published in March 2010. IRIDA PLC: S&P Affirms 'BB+' Rating on Class A Notes ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+ (sf)' credit rating on Irida PLC's class A notes. "We subsequently withdrew the rating at the issuer's request," S&P said. "The rating on the class A notes is currently capped by our rating on Greece (CC/Negative/C). Under our criteria for ratings that exceed those on sovereigns in the European Economic And Monetary Union (EMU or eurozone), the maximum achievable rating for Irida's class A notes is 'BB+ (sf)'," S&P said. "In February 2011, we assigned a 'A (sf)/Watch Neg' rating to Irida's class A notes. Subsequently, following the downgrade of Greece in June 2011, we lowered the rating on the class A notes to 'BB+ (sf)', where it is currently capped in line with our criteria. The transaction's portfolio has been replenishing since it closed, and it has been meeting its respective portfolio eligibility criteria," S&P said. "Taking into account these factors, we have affirmed our rating on the class A notes in this transaction," S&P said. "We have subsequently withdrawn our rating on the class A notes at the issuer's request," 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 Irida PLC EUR474.8-Mil. Asset-Backed Floating-Rate Notes Due 2039 Series A Rating Affirmed and Withdrawn A BB+ (sf) NR BB+ (sf) ============= I R E L A N D ============= CUSTOM HOUSE: Irish Rugby Star Invested EUR.5MM in Firm ------------------------------------------------------- Michael O'Farrell and Philip Ryan at the Mail on Sunday reports that Brian O'Driscoll is one of three top Irish rugby stars who were investors in the EUR1.1 billion collapsed pension firm Custom House Capital. The Ireland captain, along with at least two other high profile rugby stars, gave CHC money to invest, the news agency says. The report discloses that Mr. O'Driscoll handed over at least EUR400,000 to CHC several years ago. The money was used to purchase a Spencer Dock apartment, which is registered to a CHC- controlled fund for the benefit of Mr. O'Driscoll, the report relates. According to the report, the apartment will have significantly reduced in value -- perhaps by as much as half -- and Mr. O'Driscoll's investment is therefore currently making a significant loss. As reported in the Troubled Company Reporter-Europe on Oct. 25, 2011, The Irish Times said that the High Court has appointed a liquidator to Custom House Capital after Central Bank inspectors found "systemic and deliberate misuse" of more than EUR56 million of client funds. A 198-page report by two inspectors into the company described "a sort of Irish Ponzi scheme", Mr. Justice Gerard Hogan, as cited by The Irish Times, said. Independent.ie related that the Garda Fraud Squad is now investigating CHC and, within the next few months, expects to question those who ran some of the investment products where this misuse occurred, according to a source close to the garda investigation. Custom House Capital is a Dublin investment firm. DRYDEN XV: S&P Raises Rating on Class E Notes to 'BB-' ------------------------------------------------------ Standard & Poor's Ratings Services raised its credit ratings on DRYDEN XV - EURO CLO 2006 PLC's class A1, A2, A3, B, C, and E notes. "At the same time, we affirmed our rating on the class D notes," S&P noted. "The rating actions follow our assessment of the transaction's performance and our application of relevant criteria for transactions of this type," S&P said. "For our review of the transaction's performance, we used data from the trustee report dated Dec. 5, 2011, in addition to our cash flow analysis. We have taken into account recent developments in the transaction and have applied our 2010 counterparty criteria, as well as our cash flow criteria," S&P said. "From our analysis, we have observed positive rating migration in the portfolio since we last reviewed the transaction, and a decrease in the proportion of assets that we consider to be rated in the 'CCC' category ('CCC+', 'CCC', and 'CCC-'). However, the proportion of defaulted assets (rated 'CC', 'SD' [selective default], and 'D') in the pool has slightly increased since our last review," S&P said. "We have also noted that the weighted-average spread earned on DRYDEN XV - EURO CLO 2006's collateral pool, as well as the par coverage test results, has increased since our last review," S&P said. "We subjected the capital structure to a cash flow analysis to determine the break-even default rate. In our analysis, we used the reported portfolio balance that we consider to be performing, the principal cash balance, the current weighted-average spread, and the weighted-average recovery rates that we considered to be appropriate. We incorporated various cash flow stress scenarios using various default patterns, levels, and timings for each liability rating category, in conjunction with different interest rate stress scenarios," S&P said. "Taking into account our credit and cash flow analyses and our 2010 counterparty criteria, we consider the credit enhancement available to the class A1, A2, A3, B, C, and E notes to be commensurate with higher rating levels. We have therefore raised our ratings on these classes of notes," S&P said. "The credit enhancement available to the class D notes is commensurate with the current rating. We have therefore affirmed our rating on this class of notes," S&P said. "None of the notes issued by DRYDEN XV - EURO CLO 2006 were constrained by the application of the largest obligor default test, a supplemental stress test we introduced in our 2009 criteria update for corporate collateralized debt obligations (CDOs)," S&P said. "Barclays Bank PLC (A+/Stable/A-1) is the option provider to DRYDEN XV - EURO CLO 2006. We have applied our 2010 counterparty criteria and, in our view, the transaction documents do not completely reflect the counterparty criteria," S&P said. "Nonetheless, we have analyzed the counterparties' exposure to the transaction, and we consider that this is sufficiently limited to not affect our rating on the class A notes if the counterparty failed to perform," S&P said. DRYDEN XV - EURO CLO 2006 is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. 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 DRYDEN XV - EURO CLO 2006 PLC EUR422.3 Million and GBP20 Million Floating-Rate Notes Ratings Raised A1 AA- (sf) A+ (sf) A2 AA- (sf) A+ (sf) A3 AA- (sf) A+ (sf) B A+ (sf) A (sf) C BBB+ (sf) BBB- (sf) E BB- (sf) B+ (sf) Rating Affirmed D BB+ (sf) FASTNET LINE: Judge Agrees to Extend Court Protection ----------------------------------------------------- Mary Carolan at The Irish Times reports that a High Court judge has agreed to further extend court protection for Fastnet Line Ship Holdings Ltd. and the companies operating the Cork-Swansea ferry service to allow for finalization of a survival scheme. According to the Irish Times, the court heard on Tuesday that the scheme requires an investor but the necessary investment agreement has yet to be secured. Mr. Justice Peter Kelly that if the investment is not forthcoming, there was little prospect of a successful conclusion to the examinership, the Irish Times relates. The judge noted that due to the delay in finalizing investment, the examinership was running behind schedule with creditors meetings intended to be held on Dec. 16 yet to take place, the Irish Times discloses. The judge told James Doherty, for the examiner, he was prepared to grant his application to extend the period of examinership to the maximum 100 days allowed, the Irish Times notes. That extension would allow for creditors' meetings to be held on Feb. 3, when a survival scheme may be presented for approval, with the matter back in court on Feb. 8, the Irish Times states. If the investment is not forthcoming, the judge asked the examiner to mention the matter to the court, the Irish Times says. Fastnet Line Ship Holdings Ltd. and related companies are 100% owned by the West Cork Tourism Co-operative Society Ltd., which was formed in April 2009 to fund and operate the Cork-Swansea ferry service as a community-based cooperative of over 450 investors and enterprises in both Wales and Ireland. Since March 2010, about 153,000 passengers have used the ferry service. Fastnet Line secured court protection in November last year. The companies said that a new business model is expected to achieve profitability from next year onwards, according to the Irish Times. =================== K A Z A K H S T A N =================== ALFA-BANK: S&P Says Rating Reflects 'bb-' Anchor for Banks ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'kzBBB' Kazakhstan national scale rating to JSC SB Alfa-Bank (ABK). "The rating on ABK reflects the 'bb-' anchor for banks operating in Kazakhstan, our view of the bank's weaker business and risk positions than the system average, neutral capital and earnings, and neutral funding and liquidity," S&P said. "ABK's business position is a negative rating factor. It reflects a balance between its small domestic operations, concentrated in banking for small and midsize enterprises and corporate banking, and execution risks related to its fast growth strategy. Nevertheless, ABK benefits from operational, managerial, product, and funding support it receives from its Russian parent OJSC Alfa-Bank (BB/Stable/B, Russia National Scale 'ruAA') as well as the latter's strong brand name," S&P said. "Our neutral assessment of capital and earnings reflects a weakening of the risk-adjusted capital ratio (RAC) before adjustments to about 5.6%-6.0% over the next 18-24 months. Our projection incorporates higher-than-system-average loan growth, a US$30 million capital injection in the first half of 2012, and no dividend payments on common shares. The bank's enterprise risk management was developed on the basis of Alfa Group. We view its risk management capacity as better than that of midsize Kazakh banks. Senior management knows its customers well and is highly aware of the risks facing the bank," S&P said. "We expect the bank will retain its high lending concentrations, with the share of the top 20 borrowers accounting for 2.4x of adjusted total capital on Sept. 30, 2011," S&P related. "The rating on AKB reflects our view of its moderately strategic importance to its parent Alfa-Bank and the likelihood of group support, despite ABK's relatively small contribution to the group. This also reflects a mixed track record of Alfa Group supporting its financial subsidiaries during the latest financial crisis. ABK is wholly owned by Alfa-Bank and benefits from an expected capital increase in 2012, a funding line, provision of subordinated debt, buyout of nonperforming loans, as well as managerial, operational, and risk management support," S&P said. ===================== N E T H E R L A N D S ===================== MARCO POLO SEATRADE: Wants Plan Filing Deadline Moved to Feb. 17 ---------------------------------------------------------------- Marco Polo Seatrade B.V., et al., ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive periods during to file a Chapter 11 plan and solicit acceptances for that plan through and including Feb. 17, 2012, and April 18, 2012, respectively. This is the second request for extension of the Debtors' exclusivity periods. The Debtors tell the Court that the extension of the exclusivity periods will ensure that they will have sufficient time to consummate their proposed plan and address any issues that may arise without the unnecessary disruption from potential competing plans. According to the Debtors, the Senior Lenders and the official committee of unsecured creditors have consented to the proposed extension of exclusivity. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. The cases are before Judge James M. Peck. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC serves as notice and claims agent. The petition noted that the Debtors' assets and debt are both more than US$100 million and less than US$500 million. Tracy Hope Davis, United States Trustee for Region 2, appointed three members to serve on the Official Committee of Unsecured Creditors. The Committee has retained Blank Rome LLP as its attorney. Secured lender Credit Agricole Corporate and Investment Bank is represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg Sarma, Esq., at Watson, Farley & Williams (New York) LLP. =========== R U S S I A =========== SOVCOMFLOT AO: S&P Assesses Stand-alone Credit Profile at 'bb' -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Russian shipping company AO Sovcomflot to negative from stable. "At the same time, we affirmed our 'BBB-' long-term corporate credit rating and 'ruAAA' Russian national scale rating on the company," S&P said. "The outlook revision reflects Sovcomflot's weaker than expected operating performance in 2011, resulting in cash flow measures that we no longer consider rating-commensurate. Given the weak prospects for the tanker shipping industry, we see a risk that Sovcomflot may not be able to turn around its credit measures by 2013," S&P said. "Similar to industry peers, Sovcomflot's earnings and operating cash flows eroded in 2011, owing to persistently low charter rates. Under our base-case scenario, we anticipate that Sovcomflot's funds from operations (FFO; operating cash flows before working capital changes and after cash interest costs) will be about US$320 million for 2011, after US$331 million in the 12 months to Sept. 30, 2011. This was significantly below our expectations. In combination with higher debt following major installment payments for newbuildings, this resulted in weakened credit measures. Our rating previously incorporated the expectation that Sovcomflot's credit measures would firm up in 2011. Our base-case scenario now assumes that Sovcomflot's adjusted FFO to debt for 2011 will be about 11%, after 14.8% in 2010, and below the 15% we consider appropriate for the 'BBB-' rating," S&P said. "The ratings on Sovcomflot continue to reflect our opinion that there is a 'high' likelihood that the government of the Russian Federation (foreign currency BBB/Stable/A-3, local currency BBB+/Stable/A-2) would provide timely and sufficient extraordinary support to Sovcomflot in the event of financial distress. We assess Sovcomflot's stand-alone credit profile (SACP) at 'bb'," S&P said. "Our base-case operating scenario estimates that the company's cash flow measures will achieve a marginal turnaround in 2012, before improving to the rating-commensurate level by 2013. We consider a ratio of adjusted FFO to debt of about 15% to be rating-commensurate. Furthermore, we expect that Sovcomflot will fund its investments so that it does not breach a ratio of debt to capital of less than 50%. Nevertheless, we might consider lowering the rating if we see clear signs that credit ratios are performing against our expectations," S&P said. Ratings List Outlook, CreditWatch Action; Ratings Affirmed AO Sovcomflot To From Corporate Credit Rating BBB-/Negative/-- BBB-/Stable/-- Russia national scale rating ruAAA ruAAA =========================== U N I T E D K I N G D O M =========================== BXL SERVICES: In Administration Amid Difficulty Making Payments --------------------------------------------------------------- BBC News reports that BXL Services has gone into administration amid problems in making pension deficit payments. An unnamed spokesman said they are "still hopeful for a successful solution," according to BBC News. The company has called in PriceWaterhouseCoopers as administrators. "We have been battling against a substantial pension deficit for some time, one that we unfortunately inherited as part of the local authorities of Birmingham and Solihull taking over the Connexions contract in 2008. . . . The board and our management team have explored every opportunity to find a solution to this problem, but all avenues have now been closed. . . . Working with the administrators, we have identified a number of local organisations who have shown an interest in acquiring the operations of BXL," the report quoted John Ling, chief executive of BXL, as saying. Headquartered in Centennial Centre, Birmingham BXL Services is a West Midlands charity that provides education and training for thousands of young people. FOUNTAINS: Goes Into Administration, Cuts 10 Jobs ------------------------------------------------- Emily Pearce at Isle of Wight County Press Online reports that Fountains has been placed into administration, with the loss of 10 Island jobs. The company held the contract to clean Isle of Wight's public toilets. There have been 450 job losses across the United Kingdom, with Norwich and Liverpool being the worst hit, according to Press Online. However, the report relates that most of the firm's assets have been bought by the Sussex-based OCS Group, saving 1,570 jobs. "A sale of Fountains Group was the best option to secure the future of the business, which has been exposed to the difficult economic climate. The announcement enables the business to move forward confidently and on a secure financial footing," the report quoted Tony Nygate, spokesman for the administrators, as saying. Stuart Love, Isle of Wight Council director of economy and the environment, said; "We are taking steps to ensure our public toilets remain open in light of the cleaning and maintenance contractor Fountains regrettably going into administration with the loss of Island jobs," the report discloses. Fountain was responsible for the cleaning of 41 council toilets and a further ten on behalf of parish and town councils. It also undertook gully clearance work. ONLINE STAFFING: High Court Orders Liquidation ---------------------------------------------- Two Leamington Spa-based companies, Online Staffing Limited and Recruitment Web Solutions Limited, have been ordered into liquidation in the High Court on grounds of public interest following an investigation by Company Investigations of the Insolvency Service. Both companies described their business as recruitment specialists in advertising the latest job opportunities in nursing, healthcare and education, using these links: 1. onlinestaffing.co.uk 2. recruitmentwebsolutions.co.uk The investigation found there was no legitimate business carried on by either company. At court, Ms. Registrar Barber, who made the liquidation order, said: "The information obtained by the investigator suggests that the companies have been used as vehicles for fraud by passing themselves off as reputable recruitment advertising organisations in a bid to procure contracts with the advertiser and subsequently seek payment for their purported services. Welcoming the Court's judgment, Company Investigations Supervisor Chris Mayhew said: "The action we have taken against these and similar companies sends a clear and simple message that The Insolvency Service is determined to clamp down on unscrupulous companies and ensure that those who run companies in this way do not get away with it". PEACOCKS: KPMG Begins Marketing Process for Retailer Firm --------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that KPMG will this week begin a sales process for the assets of Peacocks, the discount fashion retailer that collapsed into administration last week when key backer Royal Bank of Scotland Group PLC withdrew funding, a person familiar with the matter said. Peacocks has over 70 franchise stores overseas, including in Russia and Romania. It also owns the Bonmarche discount chain. Goldman Sachs and a group of six hedge funds bought the chain for about GBP400 million, according to the FT. PETROPLUS GROUP: Two More Subsidiaries Go Into Administration ------------------------------------------------------------- Bdaily Business Network News reports that Petroplus Group's two subsidiaries, Petroplus Refining and Marketing and Petroplus Refining Teesside Limited, have gone into administration. Steven Pearson and Stephen Oldfield of PricewaterhouseCoopers have been named as joint administrators to both companies. The Petroplus Group has faced a number of challenges with finance and has suffered due to low refining margins and high restructuring costs, according to Bdaily Business Network News. In December 2011, the firm announced that it was in discussions with its lenders to restructure financing agreements, but was unable to reach any agreement, the report relates. "Our immediate priority is to continue to operate the Coryton refinery and the Teesside storage business, without disruption while the financial position is clarified and restructuring options are explored. . . . Over coming days we intend to commence discussions with a number of parties including customers, employees, the creditors and the Government to secure the future of the Coryton and Teesside sites," Bdaily Business Network News quoted Mr. Pearson as saying. Belfast Telegraph relates that the government has given an assurance it is doing all it can to find a buyer for Petroplus Refining and Marketing Limited. The firm's Coryton refinery in Essex, which supplies 20% of fuel in London and the South East, has halted sales and told its staff it was unsure when supplies would start again, according to Belfast Telegraph. The report relates that the refinery was operating as usual but no deliveries of petrol or other products, including bitumen, were leaving the site. Belfast Telegraph notes that Petrol deliveries to garages and supplies of bitumen for road building and repairs will be affected "pretty soon", unions believe. Linda McCulloch, national officer at the Unite union, said: "One thousand jobs are at risk but we firmly believe that joint action by the owners and Government can help secure the business," Belfast Telegraph adds. About Petroplus Refining Petroplus Refining and Marketing Limited is a subsidiary of Petroplus Holdings AG owns and operates the 586 acre Coryton oil refinery in Essex where it has approximately 500 employees and 350 contractors. About Petroplus Teesside Petroplus Refining Teesside Limited operates an oil storage site on Teesside and a Research & Development site in Swansea. It has approximately 60 employees. PORTSMOUTH FOOTBALL: Faces Winding-Up Threat -------------------------------------------- Roger Blitz at The Financial Times reports that Portsmouth Football Club has been issued a winding-up order by Revenue & Customs over an unpaid GBP1.6 million tax bill. The move plunges the Championship side into a fresh survival battle, two years after it became the first Premier League club to go into administration, according to The Financial Times. FT notes that Portsmouth FC's future fell into uncertainty when the owner Vladimir Antonov, a Russian businessman with banking assets, was arrested in November in central London at the request of Lithuanian authorities investigating fraud and money laundering. The club's parent company Convers Sports Initiatives went into administration in November 2011, FT relates. CSI completed the purchase of Portsmouth FC in June from the Hong Kong businessman Balram Chainrai. The club went into administration in February 2010 when its debts reached nearly GBP110 million, and it was on the brink of liquidation, the report says. On that occasion, the tax authorities were owed more than GBP17 million, the report cites. The Revenue declined to confirm that the winding-up order had been issued, but said: "Ensuring tax is paid on time should be at the centre of a football club's business strategy, just like any other business," FT adds. About Portsmouth Football Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/ -- operated Portsmouth FC, a professional soccer team that plays in the English Premier League. Established in 1898, the club boasted two FA Cups, its last in 2008, and two first division championships. Portsmouth FC's home ground is at Fratton Park; the football team is known to supporters as Pompey. Dubai businessman Sulaiman Al-Fahim purchased the club from Alexandre Gaydamak in 2009. A French businessman of Russian decent, Gaydamak had controlled Portsmouth Football Club since 2006. PREMIER FOODS: Accelerates Disposal Process of Two Brands --------------------------------------------------------- Louise Lucas at The Financial Times reports that Premier Foods has kicked off the sale of Sarson's Vinegar and is accelerating the disposal process on Hartleys Jams as it strives to secure new loan terms with its bankers by the end of March. According to the FT, people close to the group said that both the vinegar division and the jams division have been earmarked for sale for some time, but plans are accelerating as Premier Food negotiates new loan terms and new chief executive Mike Clarke battles to turn around the company. Premier Foods has been locked in talks with its banks for months after nudging up against its loan covenants, the FT relates. The 28 lenders, led by Royal Bank of Scotland and Lloyds Bank, in November granted the group a grace period through to the end of March, the FT discloses. Premier Foods is hopeful it can negotiate terms next month, the FT notes. Sarson's is expected to be valued at around GBP30 million, based on estimated earnings before interest, tax, depreciation and amortization of around GBP4 million to GBP5 million, and a multiple of six times, the FT says. Premier Foods plc is United Kingdom-based company engaged in food manufacturing, processing and distribution. RECRUITMENT WEB: High Court Orders Liquidation ---------------------------------------------- Two Leamington Spa based companies, Online Staffing Limited and Recruitment Web Solutions Limited, have been ordered into liquidation in the High Court on grounds of public interest following an investigation by Company Investigations of the Insolvency Service. Both companies described their business as recruitment specialists in advertising the latest job opportunities in nursing, healthcare and education, using these links: 1. onlinestaffing.co.uk 2. recruitmentwebsolutions.co.uk The investigation found there was no legitimate business carried on by either company. At court, Ms. Registrar Barber, who made the liquidation order, said: "The information obtained by the investigator suggests that the companies have been used as vehicles for fraud by passing themselves off as reputable recruitment advertising organisations in a bid to procure contracts with the advertiser and subsequently seek payment for their purported services. Welcoming the Court's judgment, Company Investigations Supervisor Chris Mayhew said: "The action we have taken against these and similar companies sends a clear and simple message that The Insolvency Service is determined to clamp down on unscrupulous companies and ensure that those who run companies in this way do not get away with it." SEAFRANCE: Offers Full Refund to Booked Tickets ----------------------------------------------- Breaking Travel News reports that passengers who had booked tickets with the stricken SeaFrance are to be offered full refunds. The Commercial Court in Paris has ordered the full liquidation of SeaFrance on the Jan. 9, 2012. As a result, the company is no longer able to trade. However, the company has now moved to reassure potential passengers their money is safe. "SeaFrance has always respected its obligations to its customers and regrets not being able to fulfill any outstanding customer bookings," the company said in a statement. "The company has set up an automatic refund process for all current bookings and customers will be contacted about this process by email within 24 hours. "Customers' bank accounts will be credited with a full refund as soon as possible." SeaFrance is the operator of the undersea rail link between Britain and continental Europe. TRUCK FESTIVAL: Event to Go Ahead Under New Management ------------------------------------------------------ Tim Hughes at The Oxford Times reports that Brothers Robin and Joe Bennett, the team behind Truck Festival, have disclosed that despite having previously gone into administration, the event has been saved. The Bennetts said that the festival event will go ahead under new management, according to The Oxford Times. The report recounts that despite being hailed a huge success, last year's festival made a loss, forcing the Bennetts to put the company under administration. The festival event has been rescued and will now go ahead under the management of a new operator, Y-Not Festivals, The Oxford Times notes. Y-Not Festivals are the organizers of the Y-Not festival in Derbyshire. In a joint statement, the Bennett brothers said they are delighted that the event would continue, the report adds. Truck Festival is Oxfordshire's best-loved festival of new music. YELL GROUP: Moody's Changes Probability of Default Rating to Caa2 ----------------------------------------------------------------- Moody's Investors Service changed the probability-of-default rating ('PDR') of Yell Group Plc to Caa2/LD. It has maintained the Corporate Family Rating of the company at Caa1 and has assigned a stable rating outlook. The change in PDR to Caa2/LD follows the conclusion on January 19, 2011 of its first phase of debt buybacks with a face value equivalent to GBP137.5 million for a cash consideration of GBP48.1 million. Moody's considers this transaction to come within its definition of default. The "/LD" suffix will be removed after three business days. The ratings reflect the ongoing declining operating performance trends and the heavy execution risks associated with Yell's new business strategy. The stable outlook reflects the improved leverage covenant headroom resulting from the successful conclusion of Yell's bank amendment process on 16 December 2011. This improved headroom diminishes the prospect of a further default over the next year. Ratings Rationale Following the successful conclusion of the bank amendment process, Yell has permission to use up to GBP159.5 million of cash to buy back portions of its bank debt at high discounts to par via a reverse auction process. The first phase of debt buyback has led to a reduction of about 5% in Yell's gross debt (GBP2.9 billion as of September 30, 2011) and comes at a heavily discounted price of 35% of par. Moody's anticipates Yell will carry out further buybacks under the permitted cash limit at similar discounted prices in the near term. The timing by which such debt buybacks would be completed by Yell remains unclear at this stage. Theoretically, if the contemplated debt buybacks using GBP159.5 million of cash are conducted before March 2012, Moody's would expect Yell's reported Net Debt/ EBITDA which stood at 5.5x as of September 30, 2011 on a last twelve months basis to reduce to below 5x as of March 31, 2012. While such buybacks will somewhat reduce Yell's high leverage, Moody's believes that the company's debt burden will remain substantial. Yell's market capitalization remains depressed at around GBP120 million. With the leverage covenant reset achieved, Yell has now secured about 20% headroom against the forecasts it shared with lenders pertaining to its new strategy. The company has therefore successfully managed to avoid a potential breach of its leverage covenant which was otherwise likely in Moody's view in early FY2012/13. However, Yell's revenues and profitability continue to remain under severe pressure. Following a decline of 12.4% in revenues, at constant currencies in FY2010/11, Yell's revenues fell by 9.4% in H1 2011/12, driven by the continued decline in the demand for print directories, and the prolonged difficult economic conditions which led to low confidence in SMEs. Revenues from Yell's print business registered a marked decline of 19.3% during the half year, while digital media revenues grew by 9.1% year on year during H1 2011/12. Revenues in the US were down by 7.0% at constant currencies, Spain declined by 18.6% and UK declined by 11.6% while Latin America improved by 7.9% in H12011/12. Yell remains on path to achieving an adjusted EBITDA in line with current market expectation of around GBP414-475 million (at current exchange rates) during FY 2011/12. Under the new strategy, Yell's management aims to reverse the mix of print and online revenues in the business to 25% and 75% respectively by 2015. While the company has taken quite a number of notable initial steps towards its strategy execution, Moody's is of the view that the full roll-out of the new business plan carries meaningful execution risks. With its strategy execution, Yell expects its revenues to turnaround in 2013, while EBITDA and cash flows are expected to return to growth only in 2015, which implies continued near-term pressure on Yell's profitability, in Moody's opinion. The agency notes that Yell expects to benefit from cost savings of around GBP100 million over FY2011/12-13 resulting from business consolidation initiatives. Moody's considers Yell's liquidity profile as adequate for the next twelve months. As of September 30, 2011, Yell had cash and cash equivalents of 201 million. The company continues to generate positive free cash flows and has access to a revolving credit facility of GBP75 million (reduced from GBP173 million as part of the recent bank amendment process). The company's bank debt matures in April 2014. Moody's believes that Yell's ability to re-finance its bank debt obligations on a timely basis, will critically depend on its ability to execute its new business strategy in line with its business plan. What Could Change the Rating - Down Downward pressure on the ratings could develop (i) in case the company fails to deliver on its new strategy and the marked decline in revenues and EBITDA continues unabated; (ii) liquidity concerns emerge due to significant erosion of positive free cash flow; and/ or (ii) the re-financing risk becomes pressing, potentially also pushing the company to again seek permission from its lenders for conducting further debt buybacks (beyond the GBP159.5 million) at significant discounts. What Could Change the Rating - Up While Moody's currently sees the prospect of a rating upgrade as being limited, upward rating pressure could occur if a visible and sustained recovery in Yell's operating performance led to an expectation that its full debt burden could be refinanced on schedule and at par. The principal methodology used in rating Yell Group plc was the Global Publishing Industry Methodology published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Yell Group plc is the leading publisher of classified directories in the UK and, through its subsidiary, Yellowbook, is a leading independent directories publisher in the US. Yell also owns Yell Publicidad, the largest publisher of yellow and white pages in Spain, with operations in certain countries in Latin America. Yell's revenue for FYE March 31, 2011 was GBP1.9 billion and its adjusted EBITDA (as defined by the company) was GBP513.6million. * EUROPE: Restructurings to Increase in 2012, Debtwire Poll Shows ----------------------------------------------------------------- Robin Wigglesworth at The Financial Times reports that distressed debt funds and bank traders expect restructurings to jump in Europe this year, particularly in the southern European countries at the center of the eurozone crisis. According to the FT, more than half of 100 distressed debt industry insiders polled by Debtwire expect at least 10% of companies rated below investment grade to be involved in restructurings this year. Almost a quarter predict that 15% or more of junk-rated companies will restructure their debts, which would be significantly higher than at the peak of the financial crisis of 2008-09, the FT notes. Some distressed debt funds seek to take advantage of mispriced bonds and loans, while others play a role akin to private equity, looking to take control of a company through buying a portion of its debts and turning it into equity in a restructuring -- a loan-to-own strategy, in industry parlance, the FT discloses. More than half of those polled by Debtwire expect an increase in the number of investors seeking to acquire control of companies through this "equitization" in 2012, the FT says. * UK: Nearly 10,000 Construction and Mfg Firms Go Bust in 2011 -------------------------------------------------------------- Construction Europe reports that PricewaterhouseCooper (PwC) said that nearly 10,000 UK construction and manufacturing companies became insolvent in the last two years, and 2012 could see the sectors faced with the same woes. In 2010, about 2,527 construction companies and 2,162 manufacturing companies went into administration, the report discloses. Last year, 2,688 more construction companies and 1,939 manufacturers went under. "2011 was another tough year for the construction sector and there were 6% more insolvencies in the sector in 2011 than 2010. Over the last two years we have lost more than 5,000 construction companies and the trend shows no sign of abating," Construction Europe quotes Jonathan Hook, head of engineering and construction at PwC, as saying. The report says London alone suffered 927 construction insolvencies since the start of 2010. Other badly affected areas for both sectors included the West Midlands, Yorkshire region and the north west of England. Under the ongoing cloud of economic and unemployment uncertainty, PwC said 2012 could see both sectors faced with the same challenges, reports Construction Europe. "The cuts to the government's capital programme and uncertainty around the economy and financing generally means there is little chance that 2012 will see this trend reverse. London reported a 5% decline in the number of insolvencies in the sector last year, highlighting that it is increasingly tough elsewhere in the regions, where we saw a 9% increase," Mr. Hook, as cited by Construction Europe, said. =============== 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, 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 * * *