/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/120202.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, February 2, 2012, Vol. 13, No. 24 Headlines A Z E R B A I J A N BANK OF AZERBAIJAN: Fitch Says 'BB+' IDR at Risk of Downgrade C Z E C H R E P U B L I C SAZKA AS: DF Deutsche Forfait Files Suit Over Sale of Firm D E N M A R K * DENMARK: FSA Head Expects More Bank Failures as Crisis Worsens H U N G A R Y MALEV ZRT: Has Until End of the Week to Submit Survival Plan I T A L Y SEAT PAGINE: Seeks 75% Creditor Approval for Restructuring Plan K A Z A K H S T A N BANK RBK: S&P Assigns 'B-/C' Counterparty Credit Ratings N E T H E R L A N D S CLARE ISLAND: S&P Raises Ratings on Two Note Classes to 'B-' R U S S I A TROIKA DIALOG: Fitch Revises Watch on 'B+' IDR to Evolving S W E D E N SAAB AUTOMOBILE: Dealers Seek Bankruptcy for U.S. Unit SAAB AUTOMOBILE: U.S. Unit's Involuntary Chapter 11 Case Summary UKRSIBBANK: Moody's Withdraws B3 Foreign Currency Deposit Rating S W I T Z E R L A N D PETROPLUS HOLDINGS: Linklaters, SNR to Assist in Bankruptcy U K R A I N E BANK STOLYTSYA: Central Bank Opts for Liquidation U N I T E D K I N G D O M ANGLO ERI: Goes Into Administration, Cuts 120 Jobs BMB FINANCIAL: Y3S Puts Firm Into Administration, Owes GBP191,418 IMAGESTATE MEDIA: Hits Administration in United Kingdom PETROPLUS HOLDINGS: Coryton Refinery Operations to Continue THOMAS COOK: Fitch Lowers Senior Unsecured Rating to 'B' TOWERGATE FINANCE: Fitch Affirms 'B' Long-Term IDR; Outlook Neg. WORKING MEN'S CLUB: In Receivership, to be Sold Off X X X X X X X X * Upcoming Meetings, Conferences and Seminars ********* =================== A Z E R B A I J A N =================== BANK OF AZERBAIJAN: Fitch Says 'BB+' IDR at Risk of Downgrade ------------------------------------------------------------- Fitch Ratings says that further delays with the recapitalization of International Bank of Azerbaijan (IBA) continue to weigh on the bank's ratings and increase the risk of a further downgrade. IBA's Long-term Issuer Default Rating (IDR) of 'BB+' is currently on Rating Watch Negative, reflecting this downside potential. In November 2011, IBA's creditors under a funding agreement granted the bank a waiver, valid until January 15, 2012, in respect to its breach of a regulatory capital ratio covenant. As the waiver has now expired and recapitalization of the bank has not taken place, Fitch understands that IBA is once more in technical default under this agreement, and creditors are again entitled to accelerate the funding facility, equal to about 8% of the bank's liabilities. To date, there has been no public information about the intention of the creditors to seek acceleration or otherwise. IBA's management has informed Fitch that the bank's recapitalization plan will be approved and implemented during the next few weeks. However, no specific timeframe has been announced, and previously indicated deadlines for the bank's recapitalization have repeatedly been missed. Fitch understands that as before, the plan foresees that new capital will be contributed primarily in the form of subordinated debt, although an equity injection also remains a possibility and may result in a temporary increase in the government's stake in the bank. Fitch's base case expectation remains that IBA will ultimately receive sufficient support from the Azerbaijan authorities to meet its payment obligations, and the bank's IDRs continue to reflect this expectation. If the authorities complete the planned recapitalization of the bank, then IBA's ratings could be affirmed. However, continued delays with implementation of these plans, in particular if they result in debt acceleration, could result in further rating downgrades. IBA's current ratings are as follows: -- Long-term foreign currency IDR: 'BB+' RWN -- Short-term foreign currency IDR: 'B' RWN -- Viability Rating: 'cc' RWN -- Support Rating: '3' RWN -- Support Rating Floor: 'BB+' RWN =========================== C Z E C H R E P U B L I C =========================== SAZKA AS: DF Deutsche Forfait Files Suit Over Sale of Firm ---------------------------------------------------------- CTK, citing the daily Mlada fronta Dnes (MfD), reports that DF Deutsche Forfait, a German specialist in forfaiting of export- receivables in emerging markets and developing countries, has filed a suit against the sale of bankrupt Sazka AS. According to CTK, DF Deutsche Forfait has challenged the fact that unsecured creditors should be paid only 25% of their receivables. Sazka owes over CZK62 million to DF Deutsche Forfait, CTK discloses. As reported by the Troubled Company Reporter-Europe on Jan 17, 2012, CTK related that Sazka's lottery business was last year acquired by groups PPF and KKCG which offered the highest amount of CZK3.81 billion for the firm in a tender. Sazka AS is a provider of lotteries and sport betting games in the Czech Republic. ============= D E N M A R K ============= * DENMARK: FSA Head Expects More Bank Failures as Crisis Worsens ---------------------------------------------------------------- Frances Schwartzkopff at Bloomberg News reports that Denmark's banking crisis is getting worse, threatening to trigger more failures, as loans to farms and small businesses sour and the property market fails to recover. "We have a small group of institutions where we think there might be a risk that within the next 12 to 18 months they will run into solvency problems," Bloomberg quotes Ulrik Noedgaard, director general of Copenhagen-based Financial Supervisory Authority, as saying in an interview on Monday. "Any notion that the group of troubled banks might get smaller than we thought has probably been taken off the table for a while." According to Bloomberg, Mr. Noedgaard said that banks at risk of being declared insolvent represent about 3% of Denmark's financial industry. Denmark has yet to recover from a property bubble that burst in 2007, hurting businesses as consumers cut spending and leaving farmers struggling to repay loans after the economy fell into a recession, Bloomberg notes. Mr. Noedgaard, as cited by Bloomberg, said that Danish banks also face growing losses on loans to small-and medium-sized enterprises, which are struggling to survive the fallout of a faltering domestic economy. "The domestically oriented small firms, retail businesses, different kinds of construction-related services, are struggling and the figures coming out of the annual accounts are not looking good," Bloomberg quotes Mr. Noedgaard as saying. The government has tried to prop up the banks through four rescue packages since 2008, Bloomberg notes. Brian Mikkelsen, a member of the parliament business committee that oversees banks, said that lawmakers are in talks to broaden the latest bill, which targets consolidation in the industry, Bloomberg relates. ============= H U N G A R Y ============= MALEV ZRT: Has Until End of the Week to Submit Survival Plan ------------------------------------------------------------ Zoltan Simon and Andras Gergely at Bloomberg News report that Malev Zrt., weighed down by debts aggregating HUF60 billion (US$268 million), has until the end of the week to submit a survival plan that could include a Chinese takeover, or face being grounded. According to Bloomberg, Chairman Janos Berenyi said Malev aims to sustain liquidity and continue flying through an orderly bankruptcy that would allow it to be restructured or a successor established. Mr. Berenyi, who reckons there are potential buyers for the carrier and that a bid from Hainan Airlines Co. is "not impossible", said that if the plan is rejected by its state owner, the company could fold, Bloomberg notes. European governments are becoming reluctant to prop up airlines as the debt crisis forces austerity programs in other parts of the economy, Bloomberg states. "Small airlines are always most at risk, and it's usually this time of year, with lower passenger numbers and yields resulting in poor cash-flow. A lot of airlines have had losses since 2007, with maybe a brief interruption in 2010," Bloomberg quotes Paul Sheridan, head of risk analysis at London-based aviation consultant Ascend, as saying. Malev is already effectively operating in bankruptcy protection, having been declared a "strategically important company" on Jan. 30, a status that shields it from creditors, Bloomberg notes. "The question is how we can find a smooth transition until a new national carrier is established," Bloomberg quotes Mr. Berenyi as saying. "In this situation, money runs out very fast. Funds that would normally last a month may be depleted in a few days if the airports start asking for fees in advance. If we can avoid these unexpected costs we can continue flying. If not, anything could happen." As reported by the Troubled Company Reporter-Europe on Feb. 1, 2012, Bloomberg News related that Malev said financing for the carrier is untenable and that the government may not be able to help because of European Union competition rules. "Despite the continually improving commercial results, the financing of activities had become unviable and was unresolved from the end of January," Bloomberg quoted Chief Executive Officer Lorant Limburger as saying in a statement on the carrier's Web site. A European Union ruling on Jan. 9 ordered Malev to repay "unlawful aid" the government gave the carrier from 2007 to 2010, Bloomberg disclosed. The airline said on Monday that gives Hungary "extremely limited" options for helping Malev, Bloomberg recounted. A buyer is being sought for Malev after the state took a 95% stake to replace Russian bank Vnesheconombank as controlling shareholder when a previous privatization failed, Bloomberg noted. Malev Zrt. is the flag carrier and principal airline of Hungary. ========= I T A L Y ========= SEAT PAGINE: Seeks 75% Creditor Approval for Restructuring Plan --------------------------------------------------------------- Chiara Remondini at Bloomberg News reports that Seat Pagine Gialle SpA is seeking backing from at least 75% of its creditors on a final proposal for the company's debt reorganization. Bloomberg relates that the company said in a stock-exchange statement on Tuesday that the board is giving creditors until Feb. 28 to accept the restructuring plan. The proposal, whose term sheet was released on Friday, is extended to senior bondholders as well as senior lenders and junior note holders, the report discloses. The company had net debt of about EUR2.7 billion (US$3.5 billion) at the end of December, Bloomberg notes. The company, as cited by Bloomberg, said that the date for accepting the proposal won't be extended further. If an accord isn't reached, it may file for special administration, Bloomberg states. According to Bloomberg, Seat Pagine said it would not pay the coupon due Jan. 31 on its senior secured bonds until a reorganization is agreed. About Seat Pagine Seat Pagine Gialle SpA (PG IM) -- http://www.seat.it/-- is an Italy-based company that operates multimedia platform for assisting in the development of business contacts between users and advertisers. It is active in the sector of multimedia profiled advertising, offering print-voice-online directories, products for the Internet and for satellite and ortophotometric navigation, and communication services such as one-to-one marketing. Its products include EuroPages, PgineBianche, Tuttocitta and EuroCompass, among others. Its activity is divided into four divisions: Directories Italia, operating through, Seat Pagine Gialle; Directories UK, through TDL Infomedia Ltd. and its subsidiary Thomson Directories Ltd.; Directory Assistance, through Telegate AG, Telegate Italia Srl, 11881 Nueva Informacion Telefonica SAU, Telegate 118 000 Sarl, Telegate Media AG and Prontoseat Srl, and Other Activitites division, through Consodata SpA, Cipi SpA, Europages SA, Wer liefert was GmbH and Katalog Yayin ve Tanitim Hizmetleri AS. * * * As reported by the Troubled Company Reporter-Europe on Jan. 11, 2012, Standard & Poor's Ratings Services lowered its issue rating on the senior secured bank debt of Italy-based international publisher of classified directories SEAT PagineGialle SpA (SEAT) to 'D' (Default) from 'CCC-'. "The recovery rating on this instrument is unchanged at '2', indicating our expectation of substantial (70%-90%) recovery in the event of a payment default," S&P said. All our other ratings on SEAT, including the long-term corporate credit rating of 'SD' (Selective Default), are unchanged. The lowering of the rating on SEAT's senior secured bank debt follows the company's failure to pay its interest payment and debt amortization requirement beyond the fifth business day after the scheduled due date at the end of December 2011. =================== K A Z A K H S T A N =================== BANK RBK: S&P Assigns 'B-/C' Counterparty Credit Ratings -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-/C' long- and short-term counterparty credit ratings and 'kzBB-' Kazakhstan national scale rating to Bank RBK JSC (Bank RBK). The outlook is stable. "The ratings on Bank RBK reflect our assessment of the bank's 'weak' business position, 'adequate' capital and earnings, 'moderate' risk position, 'average' funding, and 'adequate' liquidity, as our criteria define these terms. The stand-alone credit profile (SACP) is 'b-'," S&P said. "Bank RBK's 'weak' business position reflects our view of the bank's small domestic franchise, concentration in corporate banking, and aggressive growth strategy," S&P said. "Our assessment of Bank RBK's capital and earnings as 'adequate' reflects our forecast that our projected risk-adjusted capital (RAC) ratio before adjustments for diversification, will be 7.3%- 7.7% over the next 12-18 months," S&P said. "Our assessment of Bank RBK's risk position as 'moderate' reflects the bank's rapid loan growth targets, high individual loan concentrations, and still-developing risk management framework," S&P said. "Bank RBK's funding is 'average' and its liquidity is 'adequate,' in our view," S&P said. "The ratings on the bank reflect its SACP, as we give no uplift for extraordinary parental or government support. We do not assume that extraordinary government support will be available to a bank of low systemic importance," S&P said. "The stable outlook reflects our view that Bank RBK will maintain an adequate capitalization and liquidity position over the next 12 months, despite our forecast of asset quality deterioration as the bank's loan portfolio matures," S&P said. "We could lower the ratings if the bank's liquidity were to weaken substantially; if asset growth did not receive support from capital increases, decreasing our projected RAC ratio before adjustments for diversification to less than 5%; or if asset quality deterioration were materially worse than we currently expect," S&P said. "A positive rating action could follow if the bank's loan growth were slower than we currently expect or if the bank received additional material capital injections, allowing it to achieve and maintain an RAC ratio before adjustments of more than 10%. Further rating strengths in the medium term could include a strengthening of the bank's business position through solid growth of its business and financial franchise under the new management and increased business diversification," S&P said. ===================== N E T H E R L A N D S ===================== CLARE ISLAND: S&P Raises Ratings on Two Note Classes to 'B-' ------------------------------------------------------------ Standard & Poor's Ratings Services raised its credit ratings on Clare Island B.V.'s class II, III-A, III-B, IV-A, and IV-B notes. "At the same time, we affirmed our rating on the class I notes," S&P said. "The rating actions follow our assessment of the transaction's performance and our application of our 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 Nov. 30, 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. We have also observed a fall in the proportion of assets that we consider to be rated in the 'CCC' category ('CCC+', 'CCC', and 'CCC-') -- which is currently 4.59% of the performing pool -- and in the proportion of defaulted assets (rated 'CC', 'SD' [selective default], and 'D')," S&P said. "Since our last review, we have also noted an increase in the weighted-average spread earned on Clare Island's collateral pool, and the par coverage test results (i.e., the senior and class III mezzanine par value test, based on the trustee report)," 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 that the credit enhancement available to the class II, III-A, III-B, IV-A, and IV-B notes is commensurate with higher rating levels. We have therefore raised our ratings on these classes of notes," S&P said. "The credit enhancement available for the class I notes is commensurate with the current rating. We have therefore affirmed our rating on the class I notes," S&P said. "None of the classes was 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. "Morgan Stanley (A-/Negative/A-2) and Credit Suisse AG (A+/Negative/A-1) are the swap counterparties in Clare Island. We have analyzed the counterparties' exposure to the transaction, and we consider that this is sufficiently limited to not affect current rating on the class I notes if the counterparty failed to perform," S&P said. Clare Island 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 Clare Island B.V. EUR462.2 Million Senior, Mezzanine, and Subordinated Notes Ratings Raised II A- (sf) BBB (sf) III-A BB+ (sf) BB (sf) III-B BB+ (sf) BB (sf) IV-A B- (sf) CCC (sf) IV-B B- (sf) CCC (sf) Rating Affirmed I AAA (sf) =========== R U S S I A =========== TROIKA DIALOG: Fitch Revises Watch on 'B+' IDR to Evolving ---------------------------------------------------------- Fitch Ratings has upgraded Cayman-based Troika Dialog Group Limited's (TDGL) Long-term foreign currency Issuer Default Rating (IDR) to 'BBB-' from 'B+' with a Stable Outlook. The agency has also revised the Rating Watch on TDGL's subsidiary bank, CJSC Troika Dialog Bank (TDB) 'B+' Long-term IDR to Evolving from Positive. The agency has simultaneously withdrawn TDGL and TDB's ratings. The upgrade of TDGL's ratings reflects the high probability of support from Russia's Sberbank ('BBB'/Stable), which completed the acquisition of a 100% stake in TDGL on January 23, 2012. The RWE on TDB reflects uncertainty regarding TDB's role in the group, as management has not yet decided whether the bank will be sold or integrated into the group. The withdrawal of the ratings of TDGL and TDB reflect the fact that the issuers have chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, the agency will no longer provide ratings or analytical coverage for the issuers. The rating actions are as follows: Troika Dialog Group Limited: -- Long-term foreign currency IDR: upgraded to 'BBB-' from 'B+', off Rating Watch Positive (RWP), Outlook Stable, rating withdrawn -- Short-term IDR: upgraded to 'F3' from 'B', off RWP, rating Withdrawn -- Support Rating: upgraded to '2' from '5', off RWP, rating Withdrawn -- Support Rating Floor: affirmed at 'No floor' and withdrawn CJSC Troika Dialog Bank: -- Long-term foreign currency IDR: 'B+', Rating Watch revised to Evolving from Positive, rating withdrawn -- Short-term IDR: 'B', Rating Watch revised to Evolving from Positive, rating withdrawn -- Support Rating: '4', Rating Watch revised to Evolving from Positive, rating withdrawn -- National Long-term Rating: 'A-(rus)', Rating Watch revised to Evolving from Positive, rating withdrawn =========== S W E D E N =========== SAAB AUTOMOBILE: Dealers Seek Bankruptcy for U.S. Unit ------------------------------------------------------ More than 40 U.S.-based Saab dealerships have signed an involuntary chapter 11 bankruptcy petition for Saab Cars North America, Inc. The petitioners, represented by counsel Wilk Auslander LLP, assert claims totaling US$1.2 million on account of "unpaid warranty and incentive reimbursement and related obligations" and/or "parts and warranty reimbursement." Leonard A. Bellavia, Esq., at Bellavia Gentile & Associates, in New York, signed the Chapter 11 petition on behalf of the dealers. The creditors want the vehicle inventory and the parts business to be sold, free of liens from Ally Financial Inc. and Caterpillar Inc., and "to have an appropriate forum to address the claims of the dealers," Leonard A. Bellavia said in an e-mail to Bloomberg News. Following its parent's bankruptcy filing in December, Saab Cars N.A., the U.S. sales and distribution unit of Swedish car maker Saab Automobile AB, announced that it is pursuing an out-of-court resolution for SCNA operations. SCNA said it is aggressively investigating all options aimed at reinstating its parts business in North America in a timely manner. Saab Cars N.A. named in December an outside administrator to run the company as part of a plan to avoid immediate liquidation following its parent company's bankruptcy filing. The U.S. operation's chief operating officer Tim Colbeck said the outside firm, McTevia & Associates, will attempt to resume the unit's operations including warranty work and business with dealers that essentially stopped with the bankruptcy filing. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. Saab Automobile AB, Saab Automobile Tools AB and Saab Powertain AB filed for bankruptcy on Dec. 19, 2011, after running out of cash. Production at the plant in Trollhaettan, Sweden, halted for most of last year starting in March. According to Bloomberg, Saab traces its roots to the establishment of aircraft manufacturer Svenska Aeroplan AB, which was set up in 1937 and began building cars 10 years later. The auto business was split off from the aerospace operations, now called Saab AB, in the 1990s, with General Motor Corp. gaining a 50 percent stake in 1990 and full control in 2000. Brightwell Holdings BV, a Turkish private-equity firm, said it plans to bid for the bankrupt Swedish carmaker and revive its manufacturing. SAAB AUTOMOBILE: U.S. Unit's Involuntary Chapter 11 Case Summary ---------------------------------------------------------------- Alleged Debtor: Saab Cars North America, Inc. 43278 Delemere Court Royal Oak, MI 48073 Bankruptcy Case No.: 12-10344 Involuntary Chapter 11 Petition Date: January 30, 2012 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Christopher S. Sontchi Petitioners' Counsel: Eric J. Snyder, Esq. WILK AUSLANDER LLP 1515 Broadway, 43rd Floor New York, NY 10036 Tel: (212) 981-2300 Fax: (212) 752-6380 E-mail: esnyder@wilkauslander.com Creditors who signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ M2 Motors Unpaid Warranty $167,978 c/o Bellavia Gentile & Assoc. 200 Old Country Road Mineola, NY 11501 Charles River Saab Unpaid Warranty $131,257 c/o Bellavia Gentile & Assoc. 200 Old Country Road Mineola, NY 11501 Dirito Bros Walnut Creek Saab Unpaid Warranty $105,765 c/o Bellavia Gentile & Assoc. 200 Old Country Road Mineola, NY 11501 Peter Mueller, Inc. Unpaid Warranty $83,507 TJH Automotive Co. LLC Reimbursement $49,345 Wright Saab Unpaid Warranty $44,404 Guilford Saab Unpaid Warranty $42,738 J.M.K. Saab, Inc. Unpaid Warranty $38,664 Saab of Norwood Unpaid Warranty $38,558 Herb Chambers Saab Unpaid Warranty $34,958 Gold Coast Saab Unpaid Warranty $31,683 Just Saab Cincinnati Unpaid Warranty $29,199 Sheehan Saab Unpaid Warranty $29,095 Quirk Saab of Bangor Unpaid Warranty $23,271 Crossway Saab Unpaid Warranty $21,742 Sports Cars Centre of Syracuse Unpaid Warranty $21,719 Inc. Scott Saab Unpaid Warranty $21,554 Saab of Bedford Unpaid Warranty $20,697 Uftring Saab Unpaid Warranty $20,451 Perrine Buick GMC Hummer Saab Unpaid Warranty $20,329 Portland Saab Unpaid Warranty $18,876 Joseph Chermak Inc. Unpaid Warranty $16,893 Dave Towell Saab Unpaid Warranty $16,565 Anderson of Hunt Valley Reimbursement $15,630 Kelly Saab Unpaid Warranty $13,663 Saab Hawaii Unpaid Warranty $13,483 Reinertsen Motors Inc. Unpaid Warranty $12,815 The Great Britains Automotive Unpaid Warranty $12,057 Group Just Saab Dayton Unpaid Warranty $11,836 Beck Chevrolet Reimbursement $10,732 Sitton Saab Unpaid Warranty $9,890 Cold Brook Saab Unpaid Warranty $8,687 Meyer Garage Unpaid Warranty $8,525 Long Cadillac Saab Unpaid Warranty $8,493 Valenti Saab Unpaid Warranty $7,916 Auto Management Advisor Unpaid Warranty $7,898 Cars Inc. Iowa City Saab Unpaid Warranty $7,790 Jim Ellis Saab of Atlanta Unpaid Warranty $7,801 Patrick Motors Unpaid Warranty $7,459 Symes Saab of Pasadena Unpaid Warranty $6,894 Gartner Cars Inc. Unpaid Warranty $5,939 Meyers Auto Mall Saab Unpaid Warranty $5,773 Saab of Bellevue Unpaid Warranty $5,622 Rutland Saab Unpaid Warranty $5,055 Fathers and Sons, Inc. Unpaid Warranty $5,033 Trio Motors Unpaid Warranty $2,886 Garry Small Saab Unpaid Warranty $2,598 Saab of Wilmington Unpaid Warranty $879 UKRSIBBANK: Moody's Withdraws B3 Foreign Currency Deposit Rating ---------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings of UkrSibbank (Ukraine) for business reasons. At the time of withdrawal, UkrSibbank's ratings were: long-term local currency deposit rating of Ba2, long-term foreign currency deposit rating of B3, short-term local and foreign currency ratings of Not Prime, Bank Financial Strength Rating (BFSR) of E+ and Aa1.ua National Scale Rating (NSR). The outlook on the deposit ratings was negative, the outlook on the BFSR was stable. Ratings Rationale Moody's has withdrawn the ratings for its own business reasons. Headquartered in Kiev, Ukraine, UkrSibbank reported total assets of UAH42.2 billion (US$5.3 billion), equity of UAH3.6 billion (US$455 million) and net loss of UAH1.4 billion (US$175 million), as of end-Q3 2011 in accordance with its regulatory financial statements under Ukrainian accounting standards (UAS). Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Implementation Guidance published in March 2011 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". ===================== S W I T Z E R L A N D ===================== PETROPLUS HOLDINGS: Linklaters, SNR to Assist in Bankruptcy ----------------------------------------------------------- Juan Carlos Rodriguez at Bankruptcy Law360 reports that Linklaters LLP and SNR Denton have been brought on board by PricewaterhouseCoopers LLP to assist with Petroplus Holdings AG's bankruptcy, the firms said Friday. Petroplus said on Jan. 24 that it was preparing to file for insolvency and shut down some operations after learning the day before that it would not receive an extension of its line of credit, according to Law360. Linklaters said it is advising the lenders on the restructuring, Law360 relays. Based in Zug, Switzerland, Petroplus Holdings AG is Europe's largest independent oil refiner. ============= U K R A I N E ============= BANK STOLYTSYA: Central Bank Opts for Liquidation ------------------------------------------------- Daryna Krasnolutska at Bloomberg News reports that Ukraine's central bank will liquidate PAT Bank Stolytsya after the lender failed to restore financial stability following the 2008 global credit crisis. According to Bloomberg, the Natsionalnyi Bank Ukrainy said in a statement on its Web site on Tuesday that it appointed Evhen Kuno to supervise the liquidation process. The central bank took the decision on Monday, Bloomberg relates. Ukrainian banks were shaken by the global financial crisis, which dried up credit and weakened regional currencies, Bloomberg recounts. PAT Bank Stolytsya was ranked as Ukraine's 146th largest lender by assets as of Oct. 1, 2010, according to central bank data. =========================== U N I T E D K I N G D O M =========================== ANGLO ERI: Goes Into Administration, Cuts 120 Jobs -------------------------------------------------- cambridge-news.co.uk reports that Anglo ERI has gone into administration with more than 120 jobs at risk. Administrators have also moved into other parts of the group, including ERI, Radius Interiors, CDM Shopfitting and CDM Displays, according to cambridge-news.co.uk. The report relates that administrator Grant Thornton said that aside from the 120 permanent staff at the company, there is a "significant" number of contract staff that are at risk. The report notes that the company has suffered as a result of challenging market conditions. The administrators, cambridge-news.co.uk discloses, said that they were currently evaluating Anglo ERI's financial position and were in discussion with customers with the aim of fulfilling orders so that the company could keep trading. The report notes that Ian Carr, partner at Grant Thornton's Cambridge office and who is handling the administration with fellow partner David Dunckley, said: "We are seeking the support of customers, suppliers and employees to enable trading to continue while a potential buyer is sought. However, this is obviously a worrying time for all those involved with the business, especially the employees." The administrators can be reached at: Ian Carr David Dunckley GRANT THORNTON 30 Finsbury Square London EC2P 2YU Tel: +44 (0)20 7383 5100 Fax: +44 (0)20 7184 4301 E-mail: ian.carr@gtuk.com david.dunckley@uk.gt.com Anglo ERI has a shop display fittings manufacturer in St. Neots. The firm is part of the Estrella Group, with Arcadia, GAP and Next among its customers. BMB FINANCIAL: Y3S Puts Firm Into Administration, Owes GBP191,418 ----------------------------------------------------------------- mortgagestrategy reports that Y3S Group has placed one of its subsidiaries, BMB Financial Limited, into administration, leaving behind liabilities of GBP191,418. A statement of affairs report filed on Companies House shows BMB had liabilities of GBP191,418.92, of which GBP92,053.14 is owed to Her Majesty Revenue & Customs, GBP50,724.54 to Fortis Insurance Company, and GBP19,020 to Cardiff City Council, according to mortgagestrategy. The report relates that creditors number 11 in total and include Friends Life, Aegon and Zurich. In September, Cardiff-based Y3S closed its life insurance business, resulting in some redundancies, the report notes. "Our largest insurance provider changed commission parameters and capped our trade levels in early 2011, forcing immediate internal changes. Organizational restructuring of both costs and income sources was unable to regenerate sufficient profits under the restrictive conditions . . . . Despite BMB's offering and willingness to meet all liabilities, the actions of a minority creditor forced the eventual liquidation," the report quoted Barney Drake, group director at Y3S, as saying. Mr. Drake added that the administration came about after one of BMB's creditors refused to wait for all the others to agree payment terms, the report relays. IMAGESTATE MEDIA: Hits Administration in United Kingdom ------------------------------------------------------- Will Carleton at About the Image reports that Imagestate Media Ltd and Imagestate Media Partners Ltd will cease trading with immediate effect and have entered administration. The assets of the above companies have been acquired by a new investor, according to About the Image. The report relates that the decline in the traditional stock photo business and increased competition on price in the market place has resulted in the erosion of sales volume and reduced our ability to compete effectively as a general stock library. The report notes that although the above companies have ceased trading the ongoing business of Imagestate will be managed by Impact Photos and Heritage Images will operate separately. The new investors see future opportunities to develop the existing platform and provide more competitive offerings in specialist areas for all our customers moving forward, the report relates. Imagestate is a royalty free photo agency. PETROPLUS HOLDINGS: Coryton Refinery Operations to Continue ----------------------------------------------------------- The Independent reports that Coryton refinery administrators PricewaterhouseCoopers have acquired a cargo of oil that will allow refining work to continue. PwC said the move allowed a "breathing space" while efforts continue to secure the future of the Coryton refinery in Essex, according to The Independent. However, the report notes that the administrators warned that the cost of operating the site was "significant" and the new purchase would only extend operations by a number of days. The Independent relates that the move followed a warning by union sources that the site was only operating at 30% capacity amid continued concerns about job losses. The site, which supplies 20% of fuel in London and the South East, halted sales after its Swiss owner, Petroplus, placed the refinery in administration, prompting fears of up to 1,000 job losses. Steven Pearson, joint administrator and partner at PwC, said: "Discussions have been ongoing with a number of parties who have expressed an interest in sustaining refining at the site and this purchase provides more time to allow those discussions to be assessed by all parties. We continue to work through the day and night to find a solution which buys more time and which ultimately could result in a sale. . . . The costs of operating the site are very significant and this means we are living from hand to mouth. We cannot guarantee anything at this stage, but at least we have extended the period which the site can operate for by a number of days. This extra time is critical in maximizing our options." The administrator can be reached at: Steven Pearson PRICEWATERHOUSECOOPERS 7 More London Riverside London, SE1 2RT Tel: +44 (0)20 7804 8608 E-mail: steven.pearson@uk.pwc.com About Petroplus Holdings Based in Zug, Switzerland, Petroplus Holdings AG is Europe's largest independent oil refiner. * * * As reported by the Troubled Company Reporter-Europe on Jan. 20, 2012, Standard & Poor's Ratings Services lowered its long-term issuer credit ratings on Switzerland-based refiner Petroplus Holding AG to 'CC' from 'CCC+'. "At the same time, we lowered our long-term issue ratings on senior unsecured notes totaling US$1.6 billion and a US$150 million convertible bond issued by finance subsidiary Petroplus Finance Ltd. (Bermuda) to 'C' from 'CCC'. The recovery ratings of '5' on all rated instruments remain unchanged," S&P said. THOMAS COOK: Fitch Lowers Senior Unsecured Rating to 'B' -------------------------------------------------------- Fitch Ratings has downgraded Thomas Cook Group plc's (TCG) Long- term foreign currency Issuer Default Rating (IDR) and senior unsecured rating to 'B' from 'BB-' and removed the ratings from Rating Watch Negative (RWN). The Outlook is Negative. The downgrade reflects Fitch's view of TCG's higher business and financial risk profile than initially anticipated. Fitch considers that TCG currently has the features of a 'B' category credit, namely a limited margin of safety given the deterioration in the business and economic environment, and relatively high execution risks in tackling its balance sheet issues while addressing weak consumer demand and tough competition from other tour operators, online travel agents and low-cost carriers. "In Fitch's view, Thomas Cook faces significant headwinds, with the continued unrest in North Africa and the Middle East but also uncertainty surrounding the resolution of the European sovereign debt crisis. The group needs to effectively address the turnaround of its UK mainstream activity and execute asset disposals in order to reduce debt and strengthen its liquidity headroom," says Johnny Da Silva, Director in Fitch's EMEA Corporate team. If the group's trading performance stabilizes and the company improves the performance of its UK business and strengthens its liquidity headroom, Fitch could stabilize the rating Outlook. The Negative Outlook currently reflects the fact that TCG's performance for 2012 is likely to remain under pressure due to ongoing political turmoil in North Africa and the Middle East, and weak consumer spending in western Europe while the eurozone debt crisis remains unresolved. In addition, the group will incur further exceptional cash costs in FY12 and its profitability will also be negatively impacted, notably in H112 by the integration of the recent Co-operative acquisition. TCG will also have to manage higher fuel cost inflation in 2012. The company is reducing seat capacity and focusing on turning around the performance of its UK operations through several initiatives (yield management, optimization of its UK airlines capacity, rationalization of its distribution capacity and operational efficiencies). At present, Fitch expects TCG's credit metrics to stabilize in FY12 due to cash preservation measures and asset disposals. The group continues to rely on bank funding to fund its working capital changes towards the year-end. The agency does not rule out further asset disposals or some form of equity injection in the medium term to enable the group to accelerate its deleveraging commitment. However, Fitch considers that a rights issue entails high levels of market risk in the current environment. The group has a relatively modest debt redemption schedule until May 2014 with only GBP50 million of the company's GBP150 million term loan maturing in FY13. The final maturity falls in May 2014 alongside the GBP850 million RCF. The Recovery Rating of 'RR4' assigned to the bonds indicates expected recoveries in the range of 41%-50%. Driving these recovery expectations is an estimated post-restructuring EBITDA of 20% below the group's adjusted September 2011 EBITDA of EUR471 million to reflect a hypothetical adverse scenario of a significant shock to the issuer's profitability and liquidity. Combined with an estimated going concern multiple of 4x enterprise value/EBITDA, this results in a more favorable valuation than the agency's alternative estimation of a liquidation scenario. Further negative rating actions could occur if TCG is not able to stabilize its UK operating performance, maintain its current GBP200 million financial headroom towards the end of the calendar year and if its adjusted net debt (including an additional GBP800 million for a seasonal working capital buffer) to EBITDAR ratio increases towards 5.5x (5x in FY11). TOWERGATE FINANCE: Fitch Affirms 'B' Long-Term IDR; Outlook Neg. ---------------------------------------------------------------- Fitch Ratings has affirmed Towergate Finance plc's Long-term Issuer Default Rating (IDR) at 'B' and revised the Outlook to Negative from Stable. Fitch has also affirmed Towergate's GBP210 million senior secured term loan B and GBP230 million senior secured notes due 2018 at 'BB'/'RR1', and GBP290 million senior notes due 2019 at 'B-'/'RR5'. The Outlook revision to Negative reflects Towergate's underperformance in YTD September 2011 against the agency's expectations in terms of income and EBITDA (7% and 11% below respectively) and the subsequent lack of de-leveraging, which reduces headroom at the 'B' rating level. Underperformance has been the consequence of a more challenging and competitive environment than expected which has hampered volumes of insurance policies and put pressure on pricing for certain insurance lines. The lack of income growth year-on-year, together with a material increase in staff and IT expenses in the YTD September 2011, has put pressure on the EBITDA margin (35.7% based on LTM September 2011 against 37% in Fitch's expectations). Given the high total gross leverage of 6.0x following a refinancing in early FY11, the IDR of 'B' with a Stable Outlook was predicated on Fitch's view that Towergate would deliver sufficient growth in EBITDA to begin de-leveraging in line with Fitch's expectations and other issuers in the 'B' category as soon as FY11-12. However, total gross leverage based on LTM September 2011 stands at 6.6x compared with Fitch's expectation of 5.8x. Nonetheless, the IDR continues to be supported by Towergate's leading position as a non-life insurance intermediary in the UK, its wide product distribution platform and expertise in niche SME commercial and personal insurance lines. The rating also reflects the group's ability to maintain underwriting capacity under delegated authority from large and reputable insurance company partners in the UK. Despite a resilient growth in underwriting in YTD September 2011, Fitch considers that the group's main retail broking division, which generates commission-based earnings, is at risk of facing a prolonged 'soft' premium rate environment over the near-to-medium term. In Fitch's view, Towergate will also likely need to keep investing in electronic platforms to maintain its competitive advantage. In a context of subdued organic income growth, Fitch therefore considers that sustained pressure on profitability is likely, which could reduce the headroom under financial covenants in the near-to-medium term. Fitch believes that the challenging market conditions will prevail in 2012 and 2013 which may put pressure on Towergate to find alternative sources of growth, including via acquisitions. Although Fitch recognizes that potential acquisitions could generate growth, the agency will closely monitor Towergate's success in completing on these acquisitions. The issuer's proven ability to grow EBITDA organically and/or via acquisitions to return to Fitch's initial de-leveraging expectations could lead to a revision of the Outlook to Stable. However, if total gross leverage remains above 6.0x and funds from operations adjusted leverage above 6.75x in the next 18-24 months, a downgrade of the IDR to 'B-' is likely. WORKING MEN'S CLUB: In Receivership, to be Sold Off --------------------------------------------------- This Is Wiltshire News reports that a community seeks to save Morris Street Working Men's Club, which is in receivership, from possible closure as it struggles with falling trade. The Morris Street Working Men's Club will be sold off unless it breaks even over the next seven weeks, according to This Is Wiltshire News. The report notes that the club, which is losing approximately GBP500 a week, is the latest in a series of casualties in the licensing trade, which is facing its toughest trading conditions after a string of pub closures, price increases and rising costs. Chris Stirland, partner at specialist restructuring, recovery and insolvency firm FRP Advisory LLP, was appointed Joint LPA Receiver of the club with Nathan Jones, a director at FRP Advisory LLP, on November 25. The report notes that since the club entered into receivership, the Joint LPA Receivers have been working with a secured creditor, the club's committee, and members, in order to trade the club -- which is seen as an essential part of the local community. This Is Wiltshire News discloses that the new management is in place to trade the business on behalf of the receivers and they are instigating several initiatives put forward by the committee and members to increase turnover. The club has been valued and offers are being sought for the property's freehold, the report adds. =============== 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 * * *